FOREX-Dollar gets boost as risk sentiment sours

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

(Adds quotes, updates prices; previous LONDON)
By Karen Brettell
NEW YORK, Dec 11 (Reuters) - The greenback bounced on Friday
as concerns over delayed U.S. fiscal stimulus amid a surge in
COVID-19 cases and the increasing likelihood that Britain will
exit the European Union without a deal dented risk appetite.
Overnight, hopes of a global economic rebound and a fading
pandemic in 2021 saw investors taking bets on riskier currencies
linked to rising commodity prices such as the Australian and
Canadian dollars AUD= , CAD= , both of which hit more than two
year highs.
But sentiment worsened as investors turned attention back to
the prospect of more business closures to stem the spread of
COVID-19 and continued volatility from Brexit.
“This has been a disappointing week on many fronts,” said
Edward Moya, senior market analyst at OANDA in New York.
“There's been no progress on COVID aid relief talks in DC,
we have Brexit, which is once again going to go down to the
wire, and coronavirus deaths and hospitalizations are still at a
staggering pace in the U.S. and it's likely to lead to more
restrictive measures and lockdowns,” Moya said.
Another 2,902 U.S. deaths were reported on Thursday, a day
after a record 3,253 people died, a pace projected to continue
for the next two to three months until a vaccine can be widely
distributed. But talks on a federal COVID-19 relief package have not been
fruitful, and House Speaker Nancy Pelosi on Thursday raised the
possibility of negotiations dragging on through Christmas.

Data on Friday showed that U.S. producer prices barely rose
in November, supporting views that inflation would remain benign
in the near term as the pandemic restrains the labor market and
demand for services. The dollar index against a basket of major currencies =USD
was last up 0.20% at 90.936. It is trading just above a
two-and-a-half-year low of 90.471 reached on Dec. 4.
Sterling dipped 0.66% to $1.3211 and bets on further
volatility in the currency grew as a disorderly Brexit appeared
more likely. Options market moves show traders bracing for chaos, with
one-week implied volatility GBPSWO= at a nine-month high and
the premium of sterling puts to calls GBP1MRR= near its
highest since April as investors pay for downside protection.
The euro EUR= also retreated against the dollar, losing
0.16% to $1.2122 after Thursday's gains, when the European
Central Bank announced a new round of stimulus in line with
market expectations. EU leaders also reached a compromise over a
pandemic aid package. bid prices at 10:01AM (1501 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $90.9360 90.7630 +0.20% +0.00% +91.0480 +90.6130
Euro/Dollar EUR=EBS $1.2122 $1.2142 -0.16% +8.13% +1.2163 +1.2111
Dollar/Yen JPY=D3 103.9600 104.1850 -0.18% -4.25% +104.2650 +103.9400
Euro/Yen EURJPY= 126.01 126.51 -0.40% +3.33% +126.6100 +125.9600
Dollar/Swiss CHF=EBS 0.8892 0.8858 +0.40% -8.10% +0.8900 +0.8854
Sterling/Dollar GBP=D3 1.3211 1.3293 -0.66% -0.44% +1.3323 +1.3135
Dollar/Canadian CAD=D3 1.2770 1.2742 +0.24% -1.69% +1.2792 +1.2721
Aussie/Dollar AUD=D3 0.7535 0.7536 -0.03% +7.37% +0.7572 +0.7520
Euro/Swiss EURCHF= 1.0776 1.0755 +0.20% -0.70% +1.0785 +1.0750
Euro/Sterling EURGBP= 0.9173 0.9129 +0.48% +8.50% +0.9229 +0.9116
NZ NZD=D3 0.7084 0.7100 -0.21% +5.29% +0.7112 +0.7074
Dollar/Dollar
Dollar/Norway NOK=D3 8.8070 8.7540 +0.50% +0.29% +8.8680 +8.7495
Euro/Norway EURNOK= 10.6771 10.6518 +0.24% +8.53% +10.7485 +10.6245
Dollar/Sweden SEK= 8.4614 8.4428 +0.08% -9.48% +8.4896 +8.4212
Euro/Sweden EURSEK= 10.2574 10.2495 +0.08% -2.02% +10.2860 +10.2385