* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Hideyuki Sano
TOKYO, April 15 (Reuters) - The dollar nursed losses on Thursday, holding near a three-week low against a basket of currencies as U.S. bond yields pulled back from last month's surge with investors buying the Federal Reserve's arguments that interest rates can stay low.
The dollar index dipped to a four-week low of 91.571 overnight and last stood at 91.601.
The euro traded at $1.19845, near its highest level in four weeks and having gained 2.2% so far this month.
The dollar changed hands at 108.93, after hitting a three-week low of 108.755 on Wednesday.
"The dollar has been losing steam a bit in line with falls in U.S. bond yields as the Fed has maintained it dovish stance," said Yujiro Goto, chief currency strategist at Nomura Securities.
Repeated assurances from Fed officials that it will keep interest rates low have helped stabilise U.S. bonds, especially at the short end of the market.
While many investors remain nervous the Fed could change its tone later this year if inflation readings swing much higher than expected, for now they are content to give the Fed the benefit of the doubt.
Ten-year U.S. bond yields eased to 1.636%, well below a 14-month peak of 1.776% hit late March, reducing the dollar's yield attraction.
Fed Chair Jerome Powell said on Wednesday that the U.S. central bank will reduce its monthly bond purchases before it commits to an interest rate increase, a scenario many investors have regarded as a given.
A weaker U.S. dollar also saw commodity currencies supported. The Australian dollar stood at $0.7724 near Wednesday's three-week high, having broken out of its tight trading band over the last few weeks.
The New Zealand dollar likewise hit a three-week high of $0.7150 and last quoted at $0.7140.
"When economic data is strong and the Fed is not turning hawkish, we could see risk-sensitive currencies gaining against both the dollar and the yen," said Nomura's Goto.
Thursday is busy with U.S. data, including retail sales data for March and weekly jobless data due at 1230GMT.
Bitcoin stood near a record high hit on Wednesday of $64,895.22, last trading at $63,000 as cryptocurrency platform Coinbase made its debut in Nasdaq in direct listing.
After a volatile trade, the stock closed at $328.28, which gave the firm market capitalisation of $65.39 billion, about the same as New York Stock Exchange owner Intercontinental Exchange Inc.
(Reporting by Hideyuki Sano; Editing by Sam Holmes)