FOREX-Dollar dips as U.S. stimulus optimism boosts risk taking

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

(Adds quotes, updates prices; previous LONDON)
By Karen Brettell
NEW YORK, Dec 29 (Reuters) - The dollar hit a more than
two-year low against the euro on Tuesday, and riskier currencies
including the Australian and Canadian dollars gained as optimism
that U.S. lawmakers would enlarge stimulus payments to
individuals boosted risk sentiment.
The House of Representatives voted on Monday to more than
triple stimulus payments to Americans, to $2,000 from $600,
sending the plan on to the Senate for a vote. “The possibility of another U.S. stimulus package has lifted
the market's spirits,” FX analysts at Scotiabank said in a
report.
“Still, market optimism may be somewhat unwarranted as the
legislation faces little chance of passing in the Senate as
Republicans attempt to rein in spending - but rejecting
increased payments amid pressure from Trump could risk their
showing in the Jan. 5 Georgia Senate runoffs,” they added.
Georgia Republican incumbents Kelly Loeffler and David
Perdue face crucial Senate runoffs next month that will
determine who controls the chamber.
The dollar fell 0.35% against a basket of currencies =USD
to 89.92. It is holding just above a two-and-a-half year low of
89.72 reached on Dec. 17.
Investors are betting the greenback will continue to decline
- it fell more than 6% this year - on expectations the Federal
Reserve will hold interest rates near zero and the U.S. economy
will struggle to recover from coronavirus-related shutdowns.
Data released by the Commodity Futures Trading Commission on
Monday showed traders increased bets against the dollar in the
week ended Dec. 21 to $26.6 billion. That was the highest in
three months, according to Reuters calculations. The Aussie AUD=D3 gained 0.34% to $0.7608. It reached
$0.7639 on Dec. 17, the highest since June 2018.
The greenback slipped 0.40% against the Canadian dollar
CAD=D3 to 1.2797 Canadian dollars. The loonie reached 1.2684
on Dec. 17, the strongest since April 2018.
The euro EUR=EBS gained 0.40% to $1.2265 after getting as
high as $1.2274, the highest since April 2018.
The single currency has also been buoyed by a trade deal
reached last week for Britain to leave the European Union.
Though the agreement is not comprehensive, it avoided a damaging
no-deal outcome. Sterling GBP=D3 rose 0.28% to $1.3496 following a two-day
dip. It was as high as $1.3625 this month, a level unseen since
May 2018, but investors have taken some profits since the Brexit
trade deal was struck.
Bitcoin < BTC=BTSP> fell 1.17% to $26,720 after hitting a
record $28,378 on Sunday.
XRP XRP=BTSP the third-biggest digital currency, slumped
by over a fifth to its lowest since July after Coinbase, a major
U.S. virtual coin exchange, said it would suspend XRP trading.
The move came after U.S. regulators charged Ripple, a
blockchain firm associated with XRP, with conducting a $1.3
billion unregistered securities offering. Ripple has denied the
charges. Currency bid prices at 10:00AM (1500 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 89.9230 90.2430 -0.35% +0.00% +90.2530 +89.8510
Euro/Dollar EUR=EBS $1.2265 $1.2216 +0.40% +9.40% +$1.2275 +$1.2207
Dollar/Yen JPY=D3 103.5650 103.8250 -0.28% -4.68% +103.8000 +103.5300
Euro/Yen EURJPY= 127.06 126.77 +0.23% +4.19% +127.2300 +126.7100
Dollar/Swiss CHF=EBS 0.8841 0.8886 -0.51% -8.64% +0.8887 +0.8831
Sterling/Dollar GBP=D3 $1.3496 $1.3460 +0.28% +1.77% +$1.3521 +$1.3443
Dollar/Canadian CAD=D3 1.2797 1.2849 -0.40% -1.49% +1.2849 +1.2780
Aussie/Dollar AUD=D3 $0.7608 $0.7583 +0.34% +8.43% +$0.7619 +$0.7577
Euro/Swiss EURCHF= 1.0843 1.0852 -0.08% -0.08% +1.0875 +1.0836
Euro/Sterling EURGBP= 0.9085 0.9078 +0.08% +7.46% +0.9094 +0.9057
NZ NZD=D3 $0.7156 $0.7103 +0.70% +6.30% +$0.7164 +$0.7099
Dollar/Dollar
Dollar/Norway NOK=D3 8.5985 8.6490 -0.66% -2.05% +8.6405 +8.5860
Euro/Norway EURNOK= 10.5480 10.5470 +0.01% +7.22% +10.5815 +10.4950
Dollar/Sweden SEK= 8.1861 8.2569 -0.53% -12.42% +8.2842 +8.1795
Euro/Sweden EURSEK= 10.0453 10.0990 -0.53% -4.05% +10.1328 +10.0430