FOREX-Dollar loses ground on hopes for compromise on U.S. stimulus

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar index at one-week low
* U.S. data, stimulus hopes support sentiment
* Markets look to central bank speakers for clues

By Tom Westbrook and Stanley White
SINGAPORE/TOKYO, Oct 1 (Reuters) - The dollar was on the
defensive at a one-week low on Thursday, as robust U.S. data and
fresh hopes for U.S. fiscal stimulus had investors confident
enough about economic recovery prospects to seek out riskier
currencies.
Republican President Donald Trump's administration has
proposed a coronavirus stimulus package to House Democrats worth
more than $1.5 trillion, and hopes are rising that both parties
will reach a compromise.
Along with strong U.S. labour and manufacturing data, that
helped stocks to rally, and the mood pulled the dollar to a
one-week low of 93.664 against a basket of currencies =USD .
MKTS/GLOB
Early in the Asia session, the New Zealand dollar NZD=D3
extended gains to a one-week peak of $0.6635. The Aussie
AUD=D3 rose to $0.7183, also the strongest in a week. AUD/
"The two sides have come a long way," Westpac FX analyst
Sean Callow said of the possible relief bill.
"The rhetoric is reasonably conciliatory; I think we're
getting closer," he said, adding that an agreement would help
the mood in equity markets and likely spill over into currency
trade, boosting riskier currencies at the dollar's expense.
At the same time, jobs figures that showed U.S. private
employers stepped up hiring more than forecast last month and
that Midwest manufacturing grew faster than expected also fed in
to the positive sentiment. Chinese data on Wednesday had also shown the recovery on
track in the world's second-biggest economy. The yuan CNH= edged up to a week high of 6.7530 in
offshore trade on Thursday, though volumes are thin and the
onshore market is closed for holidays until Oct. 9.
Nevertheless, firmness in the safe-haven Japanese yen
indicated that plenty of underlying caution still remains. The
yen JPY= held at 105.45 on Thursday, after climbing in the
wake of a chaotic first U.S. presidential debate.
The yen ended its best quarter since mid-2019 on Wednesday
with a 2.4% gain over the three months to Sept. 30 as some of
the exuberance in risk assets faded, particularly in September.
Gains in the euro were also muted after European Central
Bank President Christine Lagarde hinted that a strategy
overhaul, and a more accommodative approach to inflation, could
be possible. The euro EUR= edged up 0.22% on Wednesday and held at
$1.17248on Thursday. The pound GBP= edged up to $1.2941.
Final purchasing managers index figures are due in Europe
and Britain later on Thursday, followed by the ISM manufacturing
survey in the United States and jobless claims data - all
providing an update on the progress of the global coronavirus
recovery.
Speeches from Bank of England Chief Economist Andy Haldane,
at 1020 GMT, and ECB Chief Economist Philip Lane, at 1545 GMT,
will also be closely watched for hints as to the next monetary
moves.