* Focus on U.S. equities after hedge fund default * Euro on track for biggest monthly drop since July 2019 * Yen one of worst performing currencies in Q1 * Graphic: World FX rates tmsnrt.rs/2RBWI5E (Recasts, adds new comment, updates prices, changes byline, dateline; previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, March 29 (Reuters) - The dollar gained on Monday in choppy trading, with the euro languishing below $1.18 and commodity currencies falling, as the currency drew some safe-haven bids on concerns about the potential fallout of a hedge fund"s default on margin calls. The dollar index, a measure of the greenback"s value against six other major currencies, hit as high as 92.919, its strongest level since November last year. It was last marginally up at 92.825. U.S. stocks traded lower after global banks said they faced potential losses from a hedge fund"s default, identified as Archegos Capital, which analysts said was tied to big U.S. media and Chinese tech companies. "Focus today is on how U.S. equities perform, especially given the hedge fund default that came out last week," said Simon Harvey, senior FX market analyst at Monex Europe in London. Harvey, however, said the Archegos impact remained limited for now, given that the effect was concentrated on a few companies. But some analysts said the fallout could spread further and weigh on other markets. The euro, meanwhile, struggled on Monday as the prospect of tougher coronavirus curbs in France and Germany dimmed the short-term outlook for the European economy. The single European currency slipped 0.1% to $1.1778, not far from last week"s four-and-a-half-month trough of $1.1762. On a monthly basis, it was down 2.3%, its biggest drop since July 2019. Compounding the euro"s woes have been the widening differentials between German and U.S. yields. The spread for 10-year debt widened to 200 basis points from 150 basis points at the start of the year, boosting the dollar. "The U.S. economy is much stronger and miles ahead in the immunization game compared to Europe"s and Japan"s, and this ultimately translates into the Fed normalizing policy years before the ECB or the BoJ," said Marios Hadjikyriacos, a strategist at brokerage XM. YEN SHORTS GROW Weekly positioning data showed the broad trend of growing dollar bullishness remained in play. Hedge funds cut their overall short dollar bets to their lowest levels since June 2020 while ramping up their bearish bets on the yen. Short yen positions have grown in recent weeks with hedge funds building their net short bets to 33% of open interest, according to ING data. Steadying stock markets offered some support for the yen, but falling bond yields and expectations of a global economic rebound have rekindled short bets. The yen is among the worst- performing currencies so far this quarter, down 6% against the dollar. The dollar was last up 0.1% against the Japanese currency at 109.74 yen. Virus-driven caution also helped the dollar higher against the Australian and New Zealand dollars and sterling, and it rose against oil-linked currencies as the re-floating of the ship blocking the Suez Canal pushed crude prices down by about 1.5%. The Aussie was last down 0.1% at US$0.7636 on Monday and the New Zealand dollar was slightly down at US$0.7002. Sterling slipped to $1.3790. ======================================================== Currency bid prices at 10:34AM (1434 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 92.8180 92.7830 +0.05% 3.153% +92.9190 +92.7160 Euro/Dollar $1.1779 $1.1794 -0.14% -3.60% +$1.1795 +$1.1763 Dollar/Yen 109.7200 109.6800 +0.04% +6.19% +109.7950 +109.3800 Euro/Yen 129.24 129.33 -0.07% +1.82% +129.4200 +128.8500 Dollar/Swiss 0.9385 0.9393 -0.06% +6.10% +0.9404 +0.9373 Sterling/Dollar $1.3792 $1.3799 -0.09% +0.91% +$1.3846 +$1.3757 Dollar/Canadian 1.2596 1.2571 +0.21% -1.08% +1.2627 +1.2578 Aussie/Dollar $0.7634 $0.7642 -0.08% -0.73% +$0.7655 +$0.7616 Euro/Swiss 1.1055 1.1073 -0.16% +2.29% +1.1078 +1.1038 Euro/Sterling 0.8538 0.8552 -0.16% -4.45% +0.8562 +0.8507 NZ $0.7002 $0.7000 +0.04% -2.49% +$0.7015 +$0.6973 Dollar/Dollar Dollar/Norway 8.5415 8.5945 -0.58% -0.49% +8.6165 +8.5435 Euro/Norway 10.0600 10.1050 -0.45% -3.89% +10.1534 +10.0560 Dollar/Sweden 8.6953 8.6398 +0.53% +6.09% +8.7014 +8.6399 Euro/Sweden 10.2423 10.1880 +0.53% +1.65% +10.2473 +10.1890 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Saikat Chatterjee in London; Editing by Larry King)