FOREX-Dollar dips as risk appetite improves

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds quotes, updates prices; previous LONDON)
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 optimsim that COVID-19
vaccines are close to being rolled out.
The dollar index pared much of its earlier losses, however, and held above a key technical support.
Analysts said that the greenback may need a new catalyst to push it significantly lower after dropping to
near three-month lows this week.
“It seems like there is a very, very strong tension between the bulls and the bears ... between the
longer-term positives of the vaccine and what seems like a relatively sturdy U.S. economy, and the
near-term outlook, which is a bit darker in terms of the COVID situation,” said Erik Nelson, a macro
strategist at Wells Fargo in New York.
The dollar index =USD was last down 0.09% at 92.415, having reached a three-month low of 92.013 on
Monday.
The index dropped slightly after data showed U.S. consumer confidence fell more than expected in
November, with encouraging vaccine news countered by a widespread surge in new COVID-19 infections and
business restrictions. The euro EUR=EBS gained 0.15% to $1.1859 and the dollar gained 0.1% to 104.71 against the Japanese
yen JPY=D3 .
The Australian dollar AUD=D3 , which is highly correlated to strong risk appetite, gained 0.53% to
$0.7324 after touching an almost three-month high of $0.7367.
Bitcoin gained more than 5% to $19,343 and is approaching its record high of $19,666 from December
2017. BTC=BTSP
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.
Democratic allies to the Biden campaign said former Federal Reserve Chair Janet Yellen is expected to
be nominated as Treasury Secretary. She has called for increased government spending to lift the economy
out of a coronavirus-induced recession. "That should be a positive appointment from the market's point of view as she is expected to pursue
conventional policies," Commerzbank strategists said in a daily note.
"And as far as the fiscal package is concerned, she is likely to listen to the Fed's demands and try
and push a package as much as possible."
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 Nelson. “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.”

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Currency bid prices at 10:14AM (1514 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $92.4150 92.5090 -0.09% +0.00% +92.5660 +92.1380
Euro/Dollar EUR=EBS $1.1859 $1.1842 +0.15% +5.78% +1.1894 +1.1838
Dollar/Yen JPY=D3 104.7100 104.5650 +0.10% -3.63% +104.7550 +104.1450
Euro/Yen EURJPY= 124.16 123.76 +0.32% +1.81% +124.2100 +123.6700
Dollar/Swiss CHF=EBS 0.9123 0.9124 +0.01% -5.70% +0.9136 +0.9098
Sterling/Dollar GBP=D3 1.3319 1.3327 -0.06% +0.42% +1.3379 +1.3294
Dollar/Canadian CAD=D3 1.3057 1.3086 -0.21% +0.52% +1.3090 +1.3011
Aussie/Dollar AUD=D3 0.7324 0.7287 +0.53% +4.40% +0.7368 +0.7285
Euro/Swiss EURCHF= 1.0819 1.0804 +0.14% -0.30% +1.0849 +1.0803
Euro/Sterling EURGBP= 0.8902 0.8884 +0.20% +5.30% +0.8913 +0.8875
NZ NZD=D3 0.6955 0.6923 +0.48% +3.37% +0.7004 +0.6919
Dollar/Dollar
Dollar/Norway NOK=D3 8.9740 9.0460 -0.83% +2.27% +9.0280 +8.9700
Euro/Norway EURNOK= 10.6430 10.6993 -0.53% +8.18% +10.7284 +10.6450
Dollar/Sweden SEK= 8.5877 8.6273 -0.32% -8.13% +8.6371 +8.5776
Euro/Sweden EURSEK= 10.1829 10.2161 -0.32% -2.73% +10.2262 +10.1860