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FOREX-Dollar dips as Biden transition, vaccines boost risk appetite

Published 11/25/2020, 04:21 AM
Updated 11/25/2020, 04:30 AM
© Reuters.
USD/SEK
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* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds quotes, updates prices)
By Karen Brettell
NEW YORK, Nov 24 (Reuters) - The U.S. dollar fell on Tuesday as risk appetite improved after U.S.
President Donald Trump accepted the transition to a Joe Biden presidency and on optimism that COVID-19
vaccines are close to being rolled out.
Trump acknowledged that the head of the General Services Administration should go ahead with a
transition to a government led by President-elect Biden, despite plans to continue with legal challenges
to election results. “We had two big risk events taken off the table, one that the Trump administration was not going to
allow for an orderly transition, and also on the vaccine front … the vaccine announcements over these last
few weeks has well exceeded the most optimistic health experts forecast,” said Edward Moya, senior market
analyst at OANDA in New York.
The dollar index =USD was last down 0.31% at 92.214, having reached a three-month low of 92.013 on
Monday. It is holding above a key technical support at around 92, which analysts say would lead to further
declines if broken.
The euro EUR=EBS gained 0.35% to $1.1884 and the dollar gained 0.08% to 104.56 against the Japanese
yen JPY=D3 .
Riskier currencies outperformed with the Australian dollar AUD=D3 last up 0.93% at $0.7354, after
earlier touching an almost three-month high of $0.7367.
The New Zealand dollar NZD=D3 hit a more than two-year high of $0.7005 as investors scaled back
wagers of more policy easing by the country's central bank, and was last up 0.72% on the day at $0.6972.
Bitcoin gained more than 4% to $19,139 and is approaching its record high of $19,666 from December
2017. BTC=BTSP
“This has become a momentum trade,” said Moya. “I think what has really driven Bitcoin these last few
months is the expectations that we're going to have significant stimulus from central banks and
governments.”
Democratic allies to the Biden campaign said former Federal Reserve Chair Janet Yellen is expected to
be nominated as Treasury Secretary, which has increased expectations of large fiscal stimulus.
She has called for increased government spending to lift the economy out of a coronavirus-induced
recession. That said, Yellen has also expressed concerns about rapidly rising U.S. debt and the worsening budget
deficit.
“She's had mixed comments I'd say on the federal budget,” said Erik Nelson, a macro strategist at
Wells Fargo. “I'm not saying she's going to be a big time budget hawk, but I don't know if she's quite as
much of a budget dove as people are willing to admit.”
Data on Tuesday showed that U.S. consumer confidence fell more than expected in November amid a
widespread resurgence in new COVID-19 infections and business restrictions, reinforcing expectations for a
sharp slowdown in economic growth in the fourth quarter. ========================================================
Currency bid prices at 3:00PM (2000 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $92.2140 92.5090 -0.31% +0.00% +92.5660 +92.1380
Euro/Dollar EUR=EBS $1.1884 $1.1842 +0.35% +6.00% +1.1894 +1.1838
Dollar/Yen JPY=D3 104.5550 104.5650 +0.08% -3.66% +104.7550 +104.1450
Euro/Yen EURJPY= 124.24 123.76 +0.39% +1.87% +124.3400 +123.6700
Dollar/Swiss CHF=EBS 0.9119 0.9124 -0.04% -5.76% +0.9136 +0.9098
Sterling/Dollar GBP=D3 1.3352 1.3327 +0.19% +0.67% +1.3379 +1.3294
Dollar/Canadian CAD=D3 1.3004 1.3086 -0.62% +0.11% +1.3090 +1.3005
Aussie/Dollar AUD=D3 0.7354 0.7287 +0.93% +4.82% +0.7368 +0.7285
Euro/Swiss EURCHF= 1.0834 1.0804 +0.28% -0.17% +1.0849 +1.0803
Euro/Sterling EURGBP= 0.8899 0.8884 +0.17% +5.26% +0.8913 +0.8875
NZ NZD=D3 0.6972 0.6923 +0.72% +3.63% +0.7004 +0.6919
Dollar/Dollar
Dollar/Norway NOK=D3 8.9110 9.0460 -1.47% +1.61% +9.0280 +8.9100
Euro/Norway EURNOK= 10.5931 10.6993 -0.99% +7.67% +10.7284 +10.5878
Dollar/Sweden SEK= 8.5528 8.6273 -0.51% -8.50% +8.6371 +8.5535
Euro/Sweden EURSEK= 10.1635 10.2161 -0.51% -2.92% +10.2262 +10.1648



(Editing by Marguerita Choy)

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