* Dollar falls through major support vs JPY; sinks broadly
* NOK leaps on rate hike prospects
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SINGAPORE, Dec 18 (Reuters) - The dollar has sunk through
major support levels and looked set for its worst week in a
month on Friday, as its accelerating slide sucked in more short
sellers keen to make an easy buck.
It has slumped to a nine-month low against the safe-haven
yen, even though investors have been gobbling up risky assets
all week, and fallen to multi-year lows against the euro, pound,
Aussie, kiwi and Canadian dollar. MKTS/GLOB
The euro EUR= has added nearly 3% in the three weeks since
it burst through stiff resistance at $1.2000. At $1.2254, after
minor profit taking on Friday, there is clear sky ahead until
the common currency's 2018 top of $1.2556.
The Australian dollar AUD=D3 , which also saw some small
profit taking, is set for a seventh consecutive weekly gain, a
streak that has carried it 9% higher since early November.
"It's a perfect combination that is besieging the dollar at
the moment," said Rodrigo Catril, National Australia Bank's
senior currency strategist in Sydney, since U.S. rates are
anchored low and better returns are expected elsewhere.
"For now the narrative of global growth, and broadening of
the recovery, favours risk-sensitive currencies like the Aussie
and the kiwi, and more of the same is to be expected in 2021."
The New Zealand dollar NZD=D3 , popped to a two-and-a-half
year high of $0.7170 Thursday after better-than-expected
national growth data, and has gained for eight weeks straight -
its longest run of weekly rises in three years. NZD/
Against a basket of currencies =USD the dollar languished
at 89.862 on Friday, just above a 2-1/2-year low hit on
Thursday. The dollar index is down 1.2% for the week so far and
has fallen 12.7% from a three-year peak in March.
The greenback last traded at 103.28 yen JPY= after falling
as far as 102.88 yen overnight.
Short positions in the dollar stood not far below nine-year
highs last week and news in recent days of vaccine rollouts,
progress in Brexit trade talks and U.S. stimulus negotiations
has only strengthened dollar bears' resolve. 0#NETUSDFX=
"If we get a U.S. fiscal deal and a Brexit deal before
Christmas, there will be nothing stopping kiwi," ANZ analysts
said in a note on Friday.
Britain and the European Union struck a downbeat tone about
the likelihood of an agreement on Thursday, but investors are
betting that is yet more brinkmanship and the pound GBP= sat
comfortably at $1.3554 after hitting a 31-month high overnight.
Elsewhere the Norwegian crown NOK= zoomed 1.4% higher on
Thursday after Norway's central bank said a vaccine-driven
recovery could prompt rate hikes early in 2022 or sooner - a
move U.S. policymakers are not even beginning to consider yet.
The Bank of Japan ends its two-day policy meeting on Friday
and is expected to leave rates steady but announce an extension
of a package of steps aimed at easing corporate funding strains.
A German sentiment survey and U.S. consumer sentiment data
are also due later on Friday.
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Currency bid prices at 9:16AM in Singapore (116110 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2255 $1.2270 -0.12% +9.31% +1.2274 +1.2251
Dollar/Yen JPY=D3 103.2700 103.0700 +0.17% -4.94% +103.2850 +103.1300
Euro/Yen EURJPY= 126.55 126.46 +0.07% +3.77% +126.5600 +126.4300
Dollar/Swiss CHF=EBS 0.8850 0.8840 +0.11% -8.54% +0.8853 +0.8848
Sterling/Dollar GBP=D3 1.3554 1.3586 -0.20% +2.23% +1.3590 +1.3556
Dollar/Canadian CAD=D3 1.2734 1.2720 +0.12% -1.97% +1.2741 +1.2717
Aussie/Dollar AUD=D3 0.7616 0.7627 -0.16% +8.53% +0.7628 +0.7611
NZ NZD=D3 0.7150 0.7155 -0.11% +6.21% +0.7151 +0.7146
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX