* Commodity-linked Aussie and kiwi trade near one-week highs
* Bitcoin climbs 12% this week, eyes record above $58,000
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, March 12 (Reuters) - The safe-haven dollar languished near a one-week low on Friday as calming bond markets lifted investor sentiment and appetite for Asian currencies.
The commodity-linked Australian and New Zealand dollars traded close to one-week highs reached overnight as inflation fears ebbed, sending Wall Street stocks to record highs.
Cryptocurrency bitcoin BTC=BTSP briefly rose above $58,000, approaching a record high.
The dollar index =USD wallowed just north of the 91.364 level touched overnight for the first time since Feb. 4. It has dropped around 0.6% this week, after retreating from a more than three-month high of 92.506 reached Tuesday.
The gauge remains 1.6% higher this year as it tracked benchmark 10-year Treasury yields US10YT=RR from below 1% to as high as 1.625% at the end of last week, before their retreat to around 1.5% currently.
A benign consumer price index reading this week helped allay fears that increased fiscal stimulus and sustained ultra-easy monetary policy could lead the U.S. recovery to overheat.
Weekly employment data overnight, meanwhile, added to positive signals from the jobs market, as President Joe Biden signed his $1.9 trillion pandemic relief bill into law. sentiment is back in the ascendancy," Ray Attrill, head of forex strategy at National Australia Bank, wrote in a client note.
"A 1.5% rather than 1% risk-free rate is evidently no longer a problem for risk assets," although for the dollar, "it still looks a bit premature to call a resumption of the 2020 downtrend with any degree of conviction."
The Aussie AUD= traded at $0.77865, on the cusp of the one-week high of $0.7793 reached Thursday. New Zealand's kiwi NZD= changed hands at $0.7223, near the one-week high of $0.7240 from overnight.
The euro also traded close to a one-week high of $1.1990.
On Thursday, the European Central Bank said it was ready to accelerate money-printing to keep eurozone yields down. dollar consolidated at around 108.60 yen JPY= , another safe-haven currency, after pulling back from a nine-month high of 109.235 reached on Tuesday.
Bitcoin last traded at $57,185.71, up more than 12% for the week, after topping $58,000 on Thursday for the first time since it set a record high at $58,354.14 on Feb. 21.
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Currency bid prices at 048 GMT Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Euro/Dollar
$1.1982
$1.1986
-0.02%
-1.92%
+1.1988
+1.1980 Dollar/Yen
JPY=D3
108.5670
108.4150
+0.00%
+4.96%
+108.5770 +0.0000 Euro/Yen
EURJPY=
130.09
130.02
+0.05%
+2.50%
+130.1300 +130.0400 Dollar/Swiss
0.9249
0.9247
+0.02%
+4.54%
+0.9251
+0.9247 Sterling/Dollar GBP=D3
1.3990
1.3994
-0.04%
+2.39%
+1.3992
+1.3988 Dollar/Canadian CAD=D3
1.2529
1.2536
-0.04%
-1.59%
+1.2535
+1.2530 Aussie/Dollar
AUD=D3
0.7786
0.7787
-0.01%
+1.22%
+0.7790
+0.7782 NZ
NZD=D3
0.7223
0.7227
-0.06%
+0.58%
+0.7231
+0.7223 Dollar/Dollar
All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates
https://tmsnrt.rs/2RBWI5E
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