FOREX-Dollar holds tight ranges as investors await news on Trump's health

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

By Eimi Yamamitsu
TOKYO, Oct 5 (Reuters) - The dollar clung to familiar ranges
on Monday as financial markets awaited news on the health of
U.S. President Donald Trump, who last week tested positive for
the coronavirus, sending investors into safe-haven assets.
Risk-sensitive markets such as stocks rallied in early Asian
trade after Trump made a surprise appearance outside his
hospital with an impromptu motorcade.
But with Trump's medical status still unclear, the dollar
index =USD remained little changed against a basket of six
major currencies, last sitting at 93.738.
"With not a lot of major economic indicators released this
week, the focus all comes down to Trump's illness," said Daisuke
Uno, chief strategist at Sumitomo Mitsui Bank.
"There is a welter of information about the severity of his
condition, and that is making it difficult for market
participants to make a move," Uno said.
Trump was flown to hospital for treatment for the
coronavirus on Friday, just weeks before the Nov. 3 election,
adding another layer of uncertainty and market volatility.
The president's medical team on Sunday said his condition
was improving and that he could be discharged from hospital as
soon as Monday. But other doctors not involved in treating the president
said his case could be severe, based on the information they
have seen at public briefings. "Things are completely unforeseeable now, with questions
such as whether Trump will become less aggressive after his
recovery... and if his supporters will find that appealing,"
said Rikiya Takebe, senior strategist at Okasan Online
Securities.
"There is also a question of whether his recovery will
garner more sympathy votes," said Takebe.
Traders adjusted their positions in safe-harbour currencies.
The dollar rose 0.23% against the safe-haven Japanese yen to
105.545 JPY=EBS , after its sharpest fall in more than a month
on Friday.
However, the greenback edged lower against the Swiss franc,
fetching 0.91700 CHF=EBS , near a one-week low of 0.9163 it
marked on Wednesday.
Some market participants said the franc's rise against the
yen was also partly caused by news of Japanese NEC Corp's $2.2
billion acquisition of Swiss software company Avaloq Group AG.
The Swiss franc climbed more than 0.5% against the yen to
115.04 CHFJPY= , hitting a level not seen since mid-September.
Meanwhile, sterling investors awaited cues from the final
round of Brexit trade negotiations as the end-December
expiration of the current transition period approaches.
British Prime Minister Boris Johnson and European Commission
President Ursula von der Leyen agreed on Saturday to step up
negotiations on a post-Brexit deal. Johnson said on Sunday while he does not want the transition
period to end without a new trade deal, he believes that Britain
could live with such an outcome. The British pound was unchanged at $1.2940 GBP=D3 while
the euro changed hands at $1.17295 EUR=EBS .
Investors also await the U.S. Vice Presidential debate on
Wednesday and several central bank events, which could offer
clues about the health of the global economy.
The Reserve Bank of Australia holds its policy meeting on
Tuesday while the Federal Reserve and the European Central Bank
release minutes from their respective September meetings.