FOREX-Dollar edges lower in thin trade, set for weekly loss

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

By Eimi Yamamitsu
TOKYO, Nov 27 (Reuters) - The dollar eased in thin trade on
Friday and was set for weekly losses as investors sought
non-dollar assets due to improving risk appetite stemming from
good news on COVID-19 vaccines and hopes for a smoother
transition to a Biden administration.
"The U.S. Fed's determination to keep interest rates low,
which is in line with other major central banks, has also led to
dollar-selling," said Rikiya Takebe, senior strategist at Okasan
Online Securities.
Otherwise, traders noted some month-end selling of dollars,
but markets remained subdued after the U.S. Thanksgiving holiday
on Thursday.
The U.S. dollar index fell 0.12% to 91.92 against a basket
of major currencies =USD , having slipped to a near three-month
low of 91.84 overnight. It has lost around 0.52% against the
basket for the week so far.
While the greenback will remain under pressure in near term
due to prolonged "risk-on" sentiment led by vaccine hopes,
Shinichiro Kadota, senior strategist at Barclays, said there
were expectations it would firm in the medium term.
"When looking at how economies have grown in the July
quarter, the United States made a strong rebound. In a scenario
where vaccines become gradually available next year and
economies return to normal, the U.S. will probably be one of the
most resilient among developed countries. And I think that will
create a dollar-favourable environment," he said.
Separately on the vaccine front, British drugmaker
AstraZeneca is facing questions about the efficacy of its
vaccine, which some experts say could hinder its regulatory
approval. But analysts say the news has had limited impact on
the market so far. Minutes from last month's European Central Bank meeting
further supported expectations for some policy stimulus at its
December gathering. In addition to the minutes, the ECB's chief economist Philip
Lane warned that tolerating "a longer phase of even lower
inflation" would hurt consumption and investment as well as
cementing expectations for low price growth in the future.
The euro firmed at $1.1923 against the greenback EUR=EBS ,
away from a more than two-month high of $1.1941 it marked on
Thursday.
Sterling GBP=D3 fetched $1.3368, holding near a
three-month high touched overnight, as market participants look
for progress on Brexit talks.
The European Union chief negotiator Michel Barnier will
discuss the state of of play on Friday with some of the bloc's
ministers responsible for fisheries, an EU official said.
The Australian dollar inched 0.25% higher at 0.7374 AUD=D3
to trade close to a near three-month high, even as the Chinese
commerce ministry said it would impose temporary anti-dumping
measures on imports of Australian wine from Nov. 28.
Meanwhile, the Kiwi NZD=D3 changed hands at 0.7018 against
the greenback.
Against the yen, the dollar lost 0.3% to 103.94 JPY=EBS .
Bitcoin BTC=BTSP , the most popular cryptocurrency, last
fetched $17,281.20 in volatile trade. Overnight, the
cryptocurrency plunged as much as 13% to its lowest since Nov.
16, having earlier rallied close to its all-time high of
$19,666.