LONDON, April 19 Reuters The dollar traded just above a onemonth low against major peers on Monday, with Treasury yields near their lowest in five weeks, after the U.S. Federal Reserve reiterated its view that any spike in inflation was likely to be temporary.

The dollar was also held down by improved risk sentiment amid a rally in global stocks to record highs.

Bitcoin stabilized after losses from Sunday, when it plunged as much as 14 to 51,541, which a report attributed to news of a power outage in China.

The dollar index, which tracks it against six other currencies, was at 91.552, not far from last weeks low of 91.484, a level not seen since March 18.

The dollar bought 108.40 yen, its lowest against the Japanese currency since March 24.

Following the decline since endMarch, the dollar index has stabilized since midlast week, said Jussi Hiljanen, chief strategist, USD and EUR rates at SEB.

The dollar is likely to remain counter cyclical until the dollar rates in the 25y sector take another leg higher. As we expect the dollar rates to move more or less sideways during Q2, EURUSD has room to gain in the coming months, especially if vaccination speeds up in the euro area and the earnings season pushes the stock market even higher.

The euro changed hands at 1.1985, flat on the day and near its highest against the dollar since March 4. The European Central Bank meets on Thursday with internal divisions over the pace of bond buying, extended COVID19 lockdowns and…