* Graphic: World FX rates tmsnrt.rs/2RBWI5E (Adds quotes, updates prices; changes dateline, previous LONDON) By Karen Brettell NEW YORK, June 21 (Reuters) - The dollar retreated from two-month highs on Monday as investors continued to evaluate whether a perceived hawkish tilt by the Federal Reserve last week will mean a pause in the dollar bear trend that has been in play since March 2020. The dollar has surged since the U.S. central bank on Wednesday said that policymakers are forecasting two rate hikes in 2023. That led investors to re-evaluate bets that the U.S. central bank will let inflation run at higher levels for a longer time before hiking rates. The greenback dropped on Monday but held above where it traded before the Fed’s statement on Wednesday. "There was a rush to clean out outstanding positions that were a little bit maybe too skewed towards dollar shorts," said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto. Now, “the market’s trying to catch its breath a little bit before it really decides whether or not to extrapolate this trend towards a stronger dollar.” The dollar has weakened on expectations that the Fed will hold rates near zero for years to come even as the economy rebounds from COVID-19-related shutdowns. Market participants will watch speeches from Fed members this week, including comments by Fed Chair Jerome Powell on Tuesday, to see if they confirm the hawkish outlook, or try to row back market expectations of tightening. The dollar index against a basket of currencies was last down 0.26% on the day at 92.013. The euro gained 0.27% to $1.1901 and the greenback gained 0.05% to 110.30 Japanese yen. The British pound gained 0.69% to $1.3885. Some analysts say the recent market moves have been exaggerated by investors unwinding crowded trades, and that the dollar still faces weakening pressures as the global economy recovers. “The core thesis underpinning our USD weakness view has not changed drastically,” Wells Fargo analysts said on Monday in a report. “For one, the global economic recovery is still gathering pace and broadening in scope. Moreover, while the Fed’s dots sent a hawkish signal, Chair Powell continued to talk down the risks of a near-term taper. In any case the Fed still looks likely to lag many of its G10 peers in reducing accommodation,” they said. Powell said last week there had been initial discussions about when to pull back on the Fed"s $120 billion in monthly bond purchases, a conversation that would be completed in coming months as the economy continues to heal. Producer price inflation data on Friday will also be in focus for any signals that price pressures may stay higher for longer, which could prompt sooner-than-expected Fed tightening. “If inflation data comes in a little bit firmer than expected, or is a little bit stickier than expected, then that could portend to more aggressive timelines for the Fed to remove accommodation,” Rai said. In cryptocurrencies, bitcoin"s poor recent run continued with a 7.40% drop to $32,964, as China expanded restrictions on mining to the province of Sichuan. Cryptomining in China accounts for more than half of global bitcoin production. ======================================================== Currency bid prices at 9:51AM (1351 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 92.0130 92.2620 -0.26% 2.258% +92.3750 +91.9680 Euro/Dollar $1.1901 $1.1869 +0.27% -2.60% +$1.1907 +$1.1848 Dollar/Yen 110.2950 110.2500 +0.05% +6.79% +110.3300 +109.7400 Euro/Yen 131.24 130.73 +0.39% +0.00% +131.2900 +130.0600 Dollar/Swiss 0.9206 0.9232 -0.29% +4.05% +0.9236 +0.9197 Sterling/Dollar $1.3885 $1.3792 +0.69% +1.64% +$1.3896 +$1.3787 Dollar/Canadian 1.2404 1.2463 -0.48% -2.60% +1.2486 +1.2388 Aussie/Dollar $0.7510 $0.7478 +0.44% -2.36% +$0.7523 +$0.7478 Euro/Swiss 1.0954 1.0946 +0.07% +0.00% +1.0964 +1.0935 Euro/Sterling 0.8568 0.8586 -0.21% +0.00% +0.8601 +0.8561 NZ $0.6970 $0.6932 +0.56% -2.92% +$0.6982 +$0.6935 Dollar/Dollar Dollar/Norway 8.6245 8.6685 -0.50% +0.45% +8.7180 +8.6255 Euro/Norway 10.2663 10.2750 -0.08% +0.00% +10.3403 +10.2566 Dollar/Sweden 8.5683 8.5873 -0.16% +4.54% +8.6386 +8.5674 Euro/Sweden 10.1983 10.2150 -0.16% +0.00% +10.2395 +10.1976 (Reporting by Karen Brettell; additional reporting by Iain Withers in London; editing by Jonathan Oatis) Our Standards: The Thomson Reuters Trust Principles.