* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds new quote, changes dateline to NEW YORK (was LONDON), changes byline)
By Stephen Culp
NEW YORK, Feb 19 (Reuters) - The dollar lost ground on Friday, extending Thursday's decline as improved risk appetite attracted buyers to equities and away from the safe-haven greenback.
The U.S. dollar has been weighed down by a string of soft labor market data, even as President Joe Biden's proposed $1.9 trillion spending package takes shape.
"What the foreign exchange market is looking at in the short term, is the dollar is going to be weak despite progress in the economy because this country has a huge deficit problem," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "The dollar index could easily test the lows of last September."
Also weighing on the dollar, the real yield gap between the United States and Germany is at its tightest since March, analysts said, despite the recent rise in U.S. Treasury yields.
Bitcoin continues to hover at record highs, and the world's largest cryptocurrency was last up 2.6% at $52,931.46, nearing $1 trillion in market capitalization. smaller rival, ethereum, was last down 1.0% at $1,920.13.
The digital currencies have gained about 82% and 1,400%, respectively, year to date, leading some analysts to warn of a speculative bubble.
"There may be a place for (cryptocurrencies) somewhere down the road, but the theories that cryptos will replace paper currency are far-fetched," Cardillo added. "It's total speculation at this point and people are going to pay the price."
The Australian dollar AUD=D3 , which is closely linked to commodity prices and the outlook for global growth, was last up 1.15% at $0.7858, touching its highest since March 2018. New Zealand NZD=D3 dollar also gained, closing in on a more than two-year high, and the Canadian dollar CAD=D3 advanced as well.
Sterling GBP=D3 rose to an almost three-year high amid Britain's aggressive vaccination programme. It had last gained 0.34% to $1.40. euro EUR=EBS showed little reaction to a slowdown in factory activity indicated by purchasing manager index data, rising 0.29% to $1.2126. yen JPY=EBS , gained ground against the dollar and was last at 105.495, creeping above its 200-day moving average for the first time in three days.
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Currency bid prices at 9:59AM (1459 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Dollar index
=USD
90.2900
90.5640
-0.29%
0.343%
+90.6550
+90.1720 Euro/Dollar
EUR=EBS
$1.2126
$1.2091
+0.29%
-0.75%
+$1.2145
+$1.2083 Dollar/Yen
JPY=D3
105.4950
105.6600
-0.16%
+2.13%
+105.7350 +105.2700 Euro/Yen
EURJPY=
127.93
127.79
+0.11%
+0.80%
+127.9500 +127.6600 Dollar/Swiss
0.8950
0.8960
-0.11%
+1.16%
+0.8969
+0.8933 Sterling/Dollar GBP=D3
$1.4019
$1.3972
+0.34%
+2.61%
+$1.4035
+$1.3952 Dollar/Canadian CAD=D3
1.2611
1.2678
-0.51%
-0.95%
+1.2713
+1.2605 Aussie/Dollar
AUD=D3
$0.7858
$0.7769
+1.15%
+2.15%
+$0.7867
+$0.7758 Euro/Swiss
EURCHF=
1.0851
1.0830
+0.19%
+0.41%
+1.0857
+1.0833 Euro/Sterling
EURGBP=
0.8648
0.8647
+0.01%
-3.23%
+0.8678
+0.8644 NZ
NZD=D3
$0.7294
$0.7220
+0.97%
+1.52%
+$0.7299
+$0.7206 Dollar/Dollar
Dollar/Norway
NOK=D3
8.4420
8.4605
-0.25%
-1.72%
+8.4905
+8.4145 Euro/Norway
EURNOK=
10.2368
10.2215
+0.15%
-2.20%
+10.2633
+10.2040 Dollar/Sweden
8.2764
8.3129
-0.06%
+0.98%
+8.3268
+8.2629 Euro/Sweden
EURSEK=
10.0333
10.0394
-0.06%
-0.43%
+10.0610
+10.0288
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates
https://tmsnrt.rs/2RBWI5E U.S. dollar
https://tmsnrt.rs/3bhVLdT
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>