FOREX-Dollar falls to lowest level in almost 3 months as investors flock to risk

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

(Updates prices, adds comment)
By Sinéad Carew
NEW YORK, Nov 27 (Reuters) - The dollar index hit an almost
three-month low on Friday after strong economic data from China
pushed investors toward riskier currencies and equity markets
extended their rally.
The dollar has fallen more than 2% so far this month after
Democratic U.S. President-elect Joe Biden's election victory and
positive COVID-19 vaccine progress, which has reduced demand for
safe havens.
New Zealand's dollar hit its highest level in more than
three years, while the Australian dollar scaled September levels
after data showed October profits at China's industrial firms
grew at their quickest pace since early 2017. The British pound declined against the euro as the European
Union and Britain said substantial differences remained over a
Brexit trade deal as the EU chief negotiator prepared to travel
to London in a last-ditch attempt to avoid a tumultuous finale
to the five-year Brexit crisis. Along with the data and Brexit headlines, Erik Bregar, head
of FX strategy at Exchange Bank of Canada in Toronto, cited
month-end selling of the U.S. dollar as investors balance
portfolios after solid monthly gains for equities.
"There's been talk all week that the U.S. dollar will see
waves of selling going into Monday," said Bregar who also noted
"dollar selling into the London fix every day this week."
But with many U.S. traders still on vacation a day after
Thursday's Thanksgiving holiday, Bipan Rai, North America head
of FX Strategy at CIBC Capital Markets, said thinner trading
volume was likely exaggerating the dollar move.
"It started with the impressive industrial profits data in
China and that's translating into what is a very patchy backdrop
for liquidity in the North American time zone," said Rai.
However, "over the longer term this is probably the right
trend for the dollar. We think the dollar has further room to
the downside," he added.
Wall Street indexes advanced, with the Nasdaq closing at a
record high, in Friday's truncated session as retailers kicked
off the year-end shopping season and COVID-19 hospitalizations
hit records. .N
The dollar =USD was last down 0.24% against a basket of
major currencies after hitting $91.756, the lowest since Sept.
1. But it stopped short of hitting the September low of $91.737,
which was last reached in April 2018.
The Australian dollar - seen as a proxy for risk along with
other commodity currencies like the Kiwi and the Canadian dollar
- was last up 0.41% AUD=D3 .
The U.S. dollar was last down 0.23% against Canada's loonie
CAD=3 while the Kiwi was up 0.21% against the greenback.
Sterling was down 0.45% against the dollar and the euro was
up 0.78% against the British currency.
Citing Brexit, Scottish leader Nicola Sturgeon said an
independence vote should take place in the earlier part of the
devolved parliament's next term, which begins next year.
The euro was up 0.39% at $1.1952 EUR=EBS , barely reacting
to downbeat comments from the European Central Bank's chief
economist Philip Lane on Thursday. Currency bid prices at 2:11PM (1911 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $91.8080 92.0380 -0.24% +0.00% +92.0530 +91.7560
Euro/Dollar EUR=EBS $1.1956 $1.1910 +0.39% +6.65% +1.1962 +1.1908
Dollar/Yen JPY=D3 0.0000 104.2500 -0.19% -4.20% +104.2650 +103.9200
Euro/Yen EURJPY= 124.38 124.18 +0.16% +1.99% +124.4200 +123.9000
Dollar/Swiss CHF=EBS 0.9045 0.9077 -0.24% -6.43% +0.9082 +0.9041
Sterling/Dollar GBP=D3 1.3300 1.3361 -0.45% +0.29% +1.3381 +1.3294
Dollar/Canadian CAD=D3 1.2986 1.3015 -0.23% -0.05% +1.3024 +1.2972
Aussie/Dollar AUD=D3 0.7385 0.7358 +0.41% +5.29% +0.7399 +0.7354
Euro/Swiss EURCHF= 1.0817 1.0796 +0.19% -0.32% +1.0827 +1.0795
Euro/Sterling EURGBP= 0.8988 0.8918 +0.78% +6.32% +0.8993 +0.8916
NZ NZD=D3 0.7023 0.7011 +0.21% +4.41% +0.7039 +0.7001
Dollar/Dollar
Dollar/Norway NOK=D3 8.8310 8.8770 -0.34% +0.85% +8.8805 +8.8210
Euro/Norway EURNOK= 10.5655 10.5680 -0.02% +7.40% +10.5900 +10.5380
Dollar/Sweden SEK= 8.4907 8.5180 +0.01% -9.17% +8.5389 +8.4907
Euro/Sweden EURSEK= 10.1520 10.1505 +0.01% -3.03% +10.1780 +10.1496