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REFILE-FOREX-Dollar falls as yuan fix lifts risk currencies, Georgia elections in focus

Published 01/06/2021, 03:56 AM
Updated 01/06/2021, 04:20 AM
© Reuters.
EUR/USD
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(Refiles to removing coding from Aussie dollar prices)
* Dollar dips, Georgia elections in focus
* Yuan official rate fixed at highest level in 30 months
* Aussie dollar gains
* Graphic: World FX rates in 2021 https://tmsnrt.rs/2RBWI5E

By Chuck Mikolajczak
NEW YORK, Jan 5 (Reuters) - The dollar fell against a basket of major currencies on Tuesday, on the
heels of China's decision to lift its official yuan exchange rate by its highest margin since it abandoned
a dollar peg in 2005, while U.S. Senate runoff elections in Georgia were also in focus.
China's central bank set the official yuan midpoint CNY=PBOC at 6.4760 per dollar before the market
opened, up 1% from the previous fix, the biggest adjustment higher since 2005. In the offshore market, the yuan strengthened as much as 6.4119 CNH=EBS for the first time since
mid-June 2018. It started the week at 6.494.
The dollar briefly strengthened in a risk-off move on Monday as U.S. stocks dropped, but resumed its
downward path after China's announcement, which also helped lift risk currencies. After initially opening
lower on Tuesday, U.S. stocks rebounded to further dent the dollar's attractiveness, with the outlook of
the Georgia runoffs drawing outsized attention.
A Democratic victory in both races could take control of the Senate away from Republicans, paving the
way for further stimulus measures as well as higher corporate taxes and more regulation.
"There is a big divergence of views on this Georgia election, people are kind of scratching their
heads as far as what is going to be the outcome here," said Edward Moya, senior market analyst at OANDA in
New York.
"There is going to be optimism for a dollar rebound, it is inevitable, how long is the question but
you will see this over-positioning of dollar bearish bets is going to have to get undone."
The dollar index =USD fell 0.486% to 89.429. The greenback has fallen in the first two sessions of
2020 after a drop of nearly 7% in 2020 to reach levels not seen since April 2018.
The New York Stock Exchange said it no longer intends to de-list three Chinese telecom companies. The
surprising reversal of an announcement made only last week added to confusion over a U.S. crackdown on
companies said to be linked to China's military. The Aussie dollar AUD=D3 , a barometer of risk appetite that also tends to follow the yuan, was up
1.4% to $0.7772, after climbing to $0.77775, its highest level since April 2018.
The euro EUR= was up 0.42% to $1.23 while the Japanese yen strengthened 0.45% versus the greenback
at 102.64 per dollar.
Sterling GBP= was last trading at $1.363, up 0.45%, having been whipsawed by a surge in infections
of a fast-spreading new coronavirus variant in the UK, with the government calling for a third national
lockdown in an effort to curb the spread. It slid 0.73% on Monday, the most since Dec. 10, after earlier rising to $1.3703, a level not seen
since May 2018.
Bitcoin traded at $34,077.96 BTC=BTSP , up 6.41%, following a roller-coaster ride that took it to a
record high of $34,800 on Sunday and a subsequent tumble to as low as $27,734 the following session.

========================================================
Currency bid prices at 2:48PM (1948 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 89.4290 89.8780 -0.49% +0.00% +89.9170 +89.4210
Euro/Dollar EUR=EBS $1.2302 $1.2252 +0.41% +0.68% +$1.2305 +$1.2247
Dollar/Yen JPY=D3 102.6450 103.1750 -0.52% -0.63% +103.1850 +102.6150
Euro/Yen EURJPY= 126.28 126.33 -0.04% -0.50% +126.5500 +126.0600
Dollar/Swiss CHF=EBS 0.8779 0.8812 -0.35% -0.75% +0.8816 +0.8776
Sterling/Dollar GBP=D3 $1.3630 $1.3562 +0.50% -0.23% +$1.3640 +$1.3558
Dollar/Canadian CAD=D3 1.2665 1.2775 -0.86% -0.54% +1.2789 +1.2656
Aussie/Dollar AUD=D3 $0.7776 $0.7665 +1.47% +1.10% +$0.7777 +$0.7661
Euro/Swiss EURCHF= 1.0800 1.0795 +0.05% -0.06% +1.0819 +1.0791
Euro/Sterling EURGBP= 0.9026 0.9023 +0.03% +1.00% +0.9054 +0.9015
NZ NZD=D3 $0.7254 $0.7175 +1.11% +1.03% +$0.7258 +$0.7170
Dollar/Dollar
Dollar/Norway NOK=D3 8.4605 8.5480 -0.97% -1.42% +8.5580 +8.4650
Euro/Norway EURNOK= 10.4094 10.4735 -0.61% -0.55% +10.4990 +10.4120
Dollar/Sweden SEK= 8.1698 8.2387 -0.57% -0.32% +8.2556 +8.1710
Euro/Sweden EURSEK= 10.0508 10.1084 -0.57% -0.25% +10.1130 +10.0392



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China sets yuan mid-point at strongest in 30 months https://tmsnrt.rs/3b41hSW
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