* U.S. dollar index near a two-year low
* U.S. private payrolls miss expectations in July
* Euro zone PMIs showcase growth
(Updates prices, market activity)
By Caroline Valetkevitch
NEW YORK, Aug 5 (Reuters) - The U.S. dollar fell against a
basket of currencies on Wednesday as investors' appetite for
risk improved on strong corporate earnings and expectations of
more stimulus measures for the pandemic-ravaged global economy.
U.S. and European investors piled into stocks on Wednesday
as companies in both regions posted a batch of positive earnings
reports.
The dollar, a safe-haven currency, typically weakens when
investors grow more comfortable holding riskier assets.
On Wednesday, the U.S. Dollar Currency Index =USD , which
measures the greenback's strength against six major currencies,
last was 0.334% lower at 92.84, but earlier came close to the
more than two-year low of 92.593 touched last week.
"Clearly we have seen risk appetite rebound on global
markets and sort of a return of the theme of a U.S.
underperformance relative to world counterparts," said Karl
Schamotta, chief market strategist at Cambridge Global Payments
in Toronto.
U.S. stocks also have become more attractive to overseas
investors as the dollar has been pressured in recent weeks by
worries about the American economic slide during the coronavirus
pandemic.
The dollar extended losses on Wednesday after the ADP
National Employment Report, which showed U.S. private payrolls
growth slowed sharply in July, suggesting a loss of momentum in
the labor market. "This morning's weak ADP data suggests we may see further
weakness when nonfarm payrolls land on Friday," he said. "That
is weighing on the dollar's prospects relative to the other
majors."
Against the Swiss franc, the dollar fell to a more than
five-year low, and was last trading down 0.6% at $0.9082.
CHF=EBS
Euro zone business activity returned to modest growth in
July as many curbs imposed to stop the spread of the coronavirus
were lifted, while official estimates showed retail sales
volumes rebounded in June. Investors also are watching negotiations between the White
House and congressional Democrats trying to reach a deal on a
relief package. Officials drew lines in the sand on Wednesday
after more than a week of discussions, with some saying they
viewed Friday as the deadline to reach a deal or drop talks.
The Australian dollar AUD=D3 , which tends to rise when
risk sentiment improves, was last up 0.47% at $0.7194 against
the U.S. dollar.
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Currency bid prices at 3:44PM (1944 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1861 $1.1800 +0.52% +0.00% +1.1905 +1.1794
Dollar/Yen JPY= 105.5900 105.7000 -0.10% +0.00% +105.8700 +105.3300
Euro/Yen EURJPY= 125.25 124.76 +0.39% +0.00% +125.5100 +124.6400
Dollar/Swiss CHF= 0.9082 0.9132 -0.55% +0.00% +0.9139 +0.9051
Sterling/Dollar GBP= 1.3117 1.3060 +0.44% +0.00% +1.3161 +1.3059
Dollar/Canadian CAD= 1.3265 1.3317 -0.39% +0.00% +1.3330 +1.3233
Australian/Doll AUD= 0.7194 0.7160 +0.47% +0.00% +0.7241 +0.7154
ar
Euro/Swiss EURCHF= 1.0774 1.0777 -0.03% +0.00% +1.0793 +1.0763
Euro/Sterling EURGBP= 0.9043 0.9032 +0.12% +0.00% +0.9059 +0.9013
NZ NZD= 0.6642 0.6622 +0.30% +0.00% +0.6673 +0.6619
Dollar/Dollar
Dollar/Norway NOK= 8.9565 9.0957 -1.53% +0.00% +9.1056 +8.9206
Euro/Norway EURNOK= 10.6280 10.7361 -1.01% +0.00% +10.7467 +10.6175
Dollar/Sweden SEK= 8.6689 8.7179 -0.08% +0.00% +8.7264 +8.6482
Euro/Sweden EURSEK= 10.2838 10.2916 -0.08% +0.00% +10.3035 +10.2836
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Euro near 2-year high https://tmsnrt.rs/33uZUsO
Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
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