* Dollar falls to 2-1/2-year low
* Euro, Swiss franc headed for best week in a month
* U.S. November jobs data disappoints
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 4 (Reuters) - The dollar fell to a 2-1/2-year low on Friday, on track for its worst week
in a month, as investors shrugged off a November U.S. non-farm payrolls report that badly missed
expectations and focused on a flurry of positive vaccine news.
By early afternoon though, the dollar trimmed its losses to trade little changed to slightly lower on
the day ahead of the weekend.
Upbeat announcements on COVID-19 vaccines have helped drive a rally in riskier currencies at the
expense of the safe-haven dollar.
The euro and Swiss franc, in contrast, were headed for their best week against the dollar in a month.
The single European currency touched a 2-1/2-year high, while the Swiss franc rose to its highest in
nearly six years.
Data showed that U.S. non-farm payrolls increased by 245,000 jobs last month after rising by 610,000
in October. That was the smallest gain since the jobs recovery started in May. Despite the weak jobs data, Don Curren, market strategist at Cambridge Global Payments, said "the key
drivers in foreign exchange are likely to remain the two narratives that have dominated trading in recent
sessions - excitement over the renewed possibility that Congress might forge another fiscal stimulus
package in the U.S., and enthusiasm about the rapid progress being made on the development of vaccines for
COVID-19."
In early-afternoon trading, the dollar index was slightly lower at 90.64 =USD , after earlier falling
to 90.471, the lowest in more than 2-1/2 years. On the week, the index was down 1.3%, on pace for its
largest weekly loss since early November.
U.S. House Speaker Nancy Pelosi said on Friday there was momentum behind talks on a coronavirus relief
bill and that a bipartisan proposal could be the basis for relief negotiations. That should keep risk
appetite higher. The euro, on the other hand, has been one of the biggest winners from recent dollar weakness, breaking
decisively above $1.20 this week.
The single currency rose to $1.2177, its highest since April 2018, and was last up slightly at $1.2146
EUR=EBS .
Against the Swiss franc, the dollar continued its descent, dropping to a nearly six-year low of 0.8886
franc CHF=EBS . The greenback was last down 0.1% at 0.8902.
The dollar gained 0.2% against the yen JPY= to 104.08 yen JPY=EBS .
Ulas Akincilar, head of trading at the online trading platform INFINOX, said despite the
weaker-than-expected U.S. employment number, it was a "finely balanced jobs report."
"The calculation is that the slowing jobs market will spur U.S. lawmakers into agreeing a fiscal
stimulus to match the Fed's monetary support," he added.
Sterling, meanwhile, rose 0.2% against the dollar to $1.3485 GBP=D3 , helped by the greenback's broad
weakness. It hit a 2-1/2-year peak on expectations that Britain will likely be able to clinch a
post-Brexit trade deal with the European Union this weekend. GBP/
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Currency bid prices at 1:26PM (1826 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.6240 90.6930 -0.07% +0.00% +90.7670 +90.4710
Euro/Dollar EUR=EBS $1.2147 $1.2145 +0.03% +8.36% +1.2177 +1.2132
Dollar/Yen JPY=D3 104.0850 103.9000 +0.19% -4.16% +104.2350 +103.7800
Euro/Yen EURJPY= 126.44 126.11 +0.26% +3.67% +126.6700 +126.0500
Dollar/Swiss CHF=EBS 0.8902 0.8910 -0.08% -8.00% +0.8917 +0.8886
Sterling/Dollar GBP=D3 1.3485 1.3448 +0.26% +1.66% +1.3538 +1.3409
Dollar/Canadian CAD=D3 1.2786 1.2864 -0.60% -1.57% +1.2873 +1.2785
Aussie/Dollar AUD=D3 0.7441 0.7442 +0.01% +6.06% +0.7443 +0.7410
Euro/Swiss EURCHF= 1.0814 1.0818 -0.04% -0.35% +1.0848 +1.0811
Euro/Sterling EURGBP= 0.9006 0.9026 -0.22% +6.53% +0.9067 +0.8984
NZ NZD=D3 0.7044 0.7078 -0.51% +4.65% +0.7079 +0.7028
Dollar/Dollar
Dollar/Norway NOK=D3 8.7720 8.7370 +0.58% +0.18% +8.7975 +8.7480
Euro/Norway EURNOK= 10.6596 10.6288 +0.29% +8.35% +10.6826 +10.6182
Dollar/Sweden SEK= 8.4350 8.4256 -0.07% -9.76% +8.4578 +8.4190
Euro/Sweden EURSEK= 10.2468 10.2539 -0.07% -2.12% +10.2820 +10.2440