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· Dollar gains further as Treasury yields resume climb

The dollar gained for a second consecutive session on Monday as rising U.S. Treasury yields forced traders to cut their bearish dollar bets to four-month lows.

Benchmark 10-year Treasury yields were trading at 1.6320% on Monday, close to Friday’s top of 1.6420%, a level last seen in February. Rising U.S. yields have lifted the greenback in recent weeks thanks to widening interest rate differentials relative to other major bond markets.

The dollar index, which tracks the U.S. currency against six major peers, held at around 91.84 in early London trading on Monday. It hit a late November 2020 high of 92.51 last week.

Rising bond yields will continue to dominate investors’ minds this week before a Federal Reserve meeting at which some analysts expect policymakers to strike an optimistic tone on the U.S. economy.

“The Fed is not expected to tinker with its monetary policy but instead communicate via forecasts that the situation is under control and that markets are running way ahead of themselves,” SEB analysts said in a note.

U.S. producer prices increased strongly in February, leading to the largest annual gain in nearly 2-1/2 years, with the country’s economy set for a massive shot in the arm from President Joe Biden’s $1.9 trillion stimulus package.[

The greenback rose 0.2% against the yen to 109.22 yen, drifting to its highest since June 2020.

The euro weakened 0.2% to $1.1925 after rising last week for the first time in three weeks as latest data showed hedge funds slashed their net euro positions.

The Australian dollar -- viewed widely as a liquid proxy for risk appetite -- fell 0.3% to $0.7732, extending Friday’s 0.4% loss.

Bitcoin weakened 1.4% after surging to a record high of $61,781.83 over the weekend.

The dollar has been supported by a paring of bets for its decline, with speculators cutting net short positions to the lowest since mid-November in the week ended March 9.

· Biden to name Gene Sperling to lead COVID-19 relief plan: administration official

U.S. President Joe Biden will name Gene Sperling to lead implementation of the $1.9 trillion COVID-19 relief plan, one of the largest economic stimulus measures in American history, an administration official said on Sunday.

Sperling, a top economic adviser to former Democratic presidents Barack Obama and Bill Clinton, was ideally suited for the job given his experience in creating jobs and boosting economic growth following previous downturns, the official said.

· Mexico's central bank says U.S. stimulus will lift economy, create market challenges

U.S. President Joe Biden’s $1.9 trillion stimulus package will help boost Mexico’s economy and exports but will also create financial market challenges in emerging economies, said Alejandro Diaz de Leon, the governor of Mexico’s central bank.

· In turning point for Kuroda, BOJ may phase out asset-buying goal

The Bank of Japan may phase out a numerical target for its risky asset buying at a policy review on Friday, highlighting the rising cost of prolonged easing and marking a turning point for Governor Haruhiko Kuroda’s massive stimulus programme.

· Ireland, Netherlands become latest countries to suspend AstraZeneca vaccine over blood clot fears

· Dane who died from blood clot after AstraZeneca shot had unusual symptoms - agency

A 60-year old Danish woman who died of a blood clot after receiving AstraZeneca’s COVID-19 vaccine had “highly unusual” symptoms, the Danish Medicines Agency said late on Sunday.

It said the woman had a low number of blood platelets and clots in small and large vessels, as well as bleeding.

· Thailand to administer AstraZeneca vaccine after delay over safety

Thailand will start using the AstraZeneca COVID-19 vaccine on Tuesday after a brief delay due to concerns over its safety, officials said, with the prime minister and his cabinet due to be the first to receive it.

· Philippine president's spokesman tests positive for COVID-19

· China's ambitious COVID-19 vaccination plan to test its production capability

China aims to vaccinate at least half a billion of its people against COVID-19 in four months, a challenge that will test the country’s formidable industrial might just as it accelerates efforts to help inoculate the rest of the world.

· China’s young people struggle to find jobs as unemployment rate holds at 13.1%

· Taiwan central bank seen holding fire again with economy strong: Reuters poll

Taiwan’s central bank is expected to keep its policy rate steady at a record low this week as the economy continues to bounce back from the COVID-19 pandemic, supported by strong export growth, a Reuters poll showed on Monday.

· Merkel’s successor will reset relations with Washington. But it’s not clear what that looks like

“The times in which we could rely fully on others — they are somewhat over.”

Those were the words from German Chancellor Angela Merkel after a difficult G-7 and NATO meeting with President Donald Trump in 2017. That sentence marked a departure from her usual sentiment toward the trans-Atlantic relationship and was widely seen as a watershed moment.

· UK government opens new offices in Scotland in effort to shore up union

· Iran says U.S. should lift sanctions, guarantee Trump's mistakes will not be repeated

· Houthis says Blinken statement 'positive', call for end to U.S. military involvement in Yemen

U.S Secretary of State Antony Blinken’s comments about supporting a Yemen free from foreign influence are “positive”, Houthi official Mohammed Ali al-Houthi said on Twitter on Monday.

He said the United States should back up its intentions by ending its involvement in military operations carried out by the Saudi-led coalition against his group.

· Yemen's Houthis say attacked southern Saudi airports with drones

Yemen’s Houthi movement said on Monday it had fired armed drones at an airport and air base in southern Saudi Arabia, and the Saudi-led coalition fighting the Iran-aligned group said it had intercepted an explosive drone.

· Security forces fire on Myanmar protests after deadliest day since coup

Reference: CNBC, Reuters, FXStreet