FOREX-Dollar off 2-month peak, yuan gains on bond benchmark inclusion

* Dollar recedes after Wall St rebounds on stimulus hopes
* Mood still shaky on economic, political uncertainties
* Yuan gains on WGBI inclusion
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Hideyuki Sano
TOKYO, Sept 25 (Reuters) - The U.S. dollar dipped from a
two-month peak early on Friday as renewed hopes of U.S. stimulus
eased investors' concerns about economic recovery, while the
Chinese yuan gained after the country was added to a global bond
benchmark.
The dollar index edged down to 94.313 =USD , after scaling
a two-month high of 94.601 in Thursday's U.S session amid a bout
of risk aversion.
Currencies and stocks reversed direction, with U.S. equities
gaining as traders latched on to hopes that stalled stimulus
talks could resume between House of Representatives Speaker
Nancy Pelosi, a Democrat and U.S. Treasury Secretary Steven
Mnuchin.
Democrats in the U.S. House of Representatives are working
on a $2.2 trillion coronavirus stimulus package that could be
voted on next week. The move came after the latest data showed the number of
Americans filing new claims for unemployment benefits
unexpectedly increased last week in a sign the economic recovery
was running out of steam. Many market players were cautious, however, as there remain
doubts over whether the U.S. can overcome divisions to agree on
a package.
U.S. political uncertainties are also keeping many investors
on edge，with a disputed election becoming more likely after U.S.
President Donald Trump refused to commit to a peaceful transfer
of power if he lost the election.
"We have seen lately the dollar gaining as risk assets are
sold off. We need to see whether this will continue beyond the
end of this month," said Yukio Ishizuki, senior strategist at
Daiwa Securities.
Rises in U.S. real yields have also underpinned the dollar.
The yield on 10-year U.S. inflation-protected Treasuries rose to
minus 0.911% US10YTIP=RR , the highest since late July.
The euro changed hands at $1.1671 EUR= after having hit a
two-month low of $1.16265 on Thursday.
The dollar was little moved at 105.41 yen JPY= , having
risen to 105.53, its strongest level in a over week, on
Thursday.
The British pound managed to stay above Wednesday's
two-month lows after Britain's government launched scaled-back
job support for workers hit by a resurgent COVID-19 pandemic.
The offshore yuan gained, stemming its decline over the past
week or so, after FTSE Russell announced it will add Chinese
government bonds to its flagship World Government Bond Index
(WGBI) starting in 2021. "Foreign ownership of Chinese government bonds has picked up
steadily. The inclusion in the WGBI benchmark will prompt
additional foreign flows into the Chinese bond market and
support the yuan," said Kevin Xie, China economist at the
Commonwealth Bank in Sydney.
The Australian dollar traded at $0.7056 AUD=D4 , having hit
a two-month low of $0.7016 overnight.
The Turkish lira maintained its firm tone following a jump
from Thursday's record low after the country's central bank
unexpectedly hiked interest rates by 200 basis points.
The lira last stood at 7.6200 per dollar TRYTOM=D4 , more
than 1% above its record low of 7.7170 set on Thursday.