* Dollar pulls back after best day in 3 weeks
* Pound bounces off nine-day low
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds details, updates prices; previous LONDON)
By Chuck Mikolajczak
NEW YORK, Oct 14 (Reuters) - The dollar index retreated on
Wednesday, a day after notching its biggest daily percentage
gain in three weeks and the euro touched a nine-day low, as
global equity markets remained cautious in light of waning hopes
for a COVID-19 vaccine or U.S. fiscal stimulus.
The dollar jumped on Tuesday on concerns about the length of
time before a COVID-19 vaccine would be available and on
diminishing expectations a fresh fiscal stimulus package would
be agreed upon in the United States before the Nov. 3
presidential election.
Senate Majority Leader Mitch McConnell said on Tuesday the
Republican-led U.S. Senate would vote next week on a targeted,
$500 billion coronavirus economic aid bill of the type Democrats
already have rejected as they hold out for trillions in relief.
"Right now the dollar is simply going back and forth on
stimulus news, and it is not going very far," said Joseph
Trevisani, senior analyst at FXStreet.com.
The greenback extended declines after data showed the U.S.
producer price index for final demand rose 0.4% in September,
topping the 0.2% forecast, after advancing 0.3% in August, amid
a surge in the cost of hotel and motel accommodation that led to
the first year-on-year gain since March. The dollar index =USD fell 0.232%.
The pound fell as low as $1.2865 as hopes dimmed for a
Brexit agreement, before recovering as the European Union and
Britain are set to prolong talks past a mid-October deadline to
try to bridge persistent gaps holding up a new agreement,
according to sources and documents. "For the pound it is pretty much Brexit - Boris says
something good, it goes up, Boris says something bad, it goes
down. It doesn't seem to be reacting terribly to the
coronavirus," said Trevisani.
Sterling GBP= was last trading at $1.3046, up 0.87% on the
day.
Euro zone industrial production data showed the rate of
recovery slowed sharply in August, in line with expectations.
European nations are extending restrictions well beyond
social life to close schools, cancel surgeries and enlist
legions of student medics as overwhelmed authorities face their
nightmare scenario of a COVID-19 resurgence at the onset of
winter.
The euro EUR=EBS was up 0.11% to $1.17575.
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Currency bid prices at 10:33 AM (1433 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1757 $1.1745 +0.11% +4.87% +1.1769 +1.1719
Dollar/Yen JPY=D3 105.1950 105.4600 -0.27% -3.17% +105.5100 +105.1650
Euro/Yen EURJPY= 123.67 123.89 -0.18% +1.41% +123.9500 +123.5900
Dollar/Swiss CHF=EBS 0.9127 0.9149 -0.24% -5.68% +0.9163 +0.9125
Sterling/Dollar GBP=D3 1.3047 1.2937 +0.88% -1.60% +1.3053 +1.2865
Dollar/Canadian CAD=D3 1.3140 1.3136 +0.05% +1.16% +1.3157 +1.3116
Aussie/Dollar AUD=D3 0.7172 0.7161 +0.15% +2.22% +0.7191 +0.7153
Euro/Swiss EURCHF= 1.0729 1.0742 -0.12% -1.13% +1.0749 +1.0727
Euro/Sterling EURGBP= 0.9009 0.9077 -0.75% +6.56% +0.9121 +0.9010
NZ NZD=D3 0.6656 0.6648 +0.12% -1.08% +0.6672 +0.6645
Dollar/Dollar
Dollar/Norway NOK=D3 9.1950 9.2490 -0.62% +4.78% +9.2715 +9.1895
Euro/Norway EURNOK= 10.8113 10.8570 -0.42% +9.89% +10.8800 +10.8010
Dollar/Sweden SEK= 8.8143 8.8295 -0.08% -5.70% +8.8420 +8.7961
Euro/Sweden EURSEK= 10.3624 10.3710 -0.08% -0.99% +10.3840 +10.3451