FOREX-Dollar plumbs more than two-year lows as stimulus hopes stay high

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

(Adds quotes, updates prices; previous LONDON)
By Karen Brettell
NEW YORK, Dec 30 (Reuters) - The euro, Aussie and New
Zealand dollars all posted more than two-year highs against the
struggling greenback on Wednesday as investors bet on more U.S.
fiscal support and positioned for year-end in light trading
volume.
Investors are betting that an improving economic outlook as
COVID-19 vaccines are rolled out and unprecedented fiscal and
monetary stimulus will boost global growth and asset prices in
2021.
U.S. economic growth is expected to drag behind peers,
however, with the U.S. currency also suffering from rising
fiscal and current account deficits as the government increases
spending to tackle coronavirus-related business shutdowns.
“The start of Covid-19 immunization campaigns in several
countries as well as additional U.S. fiscal support have reduced
downside risk to the global economy and bode well for general
financial market sentiment. This remains a drag for USD,” Elias
Haddad, senior currency Strategist at Commonwealth Bank of
Australia, said in a report on Wednesday.
The dollar fell 0.30% against a basket of currencies =USD
to 89.71 after earlier dropping to 89.56, the lowest since April
2018. It is down more than 7% this year.
Trading volumes are thin with many investors out between the
Christmas and New Year holidays.
The euro EUR=EBS reached $1.2310, before falling back to
$1.2279, up 0.30% on the day.
The Aussie AUD=D3 surged to $0.7680, and was last up 0.87%
at $0.7671. The kiwi NZD=D3 reached $0.7199, and was last
$0.7189, up 0.59%.
It was the highest level for all three currencies against
the U.S. dollar since April 2018.
The dollar also slipped 0.50% to 103.08 yen JPY= . It is
holding just above a nine-month low of 102.86 yen reached on
Dec. 17.
Optimism of further stimulus came even after Senate Majority
Leader Mitch McConnell on Tuesday put off a vote on increasing
COVID-19 relief checks from $600 to $2,000. U.S. President-elect Joe Biden is expected to push for more
measures to support the U.S. economy after he is inaugurated
next month.
Sterling also jumped before lawmakers on Wednesday voted on
the Brexit deal Prime Minister Boris Johnson clinched last week.
The agreement avoids a chaotic no-deal exit, but does not
cover services, which make up 80% of the British economy.
The pound GBP=D3 gained 0.58% to $1.3585. It is holding
below the $1.3625 level reached earlier this month, the highest
since May 2018.
Bitcoin BTC=BTSP reached a record high of $28,599.99,
taking the yearly gain for the world's most popular
cryptocurrency past 290% BTC=BTSP . Currency bid prices at 9:32AM (1432 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 89.7140 90.0010 -0.30% +0.00% +90.0110 +89.5590
Euro/Dollar EUR=EBS $1.2279 $1.2251 +0.23% +9.53% +$1.2310 +$1.2250
Dollar/Yen JPY=D3 103.0750 103.4850 -0.50% -5.20% +103.5800 +102.9650
Euro/Yen EURJPY= 126.56 126.86 -0.24% +3.78% +127.1300 +126.4700
Dollar/Swiss CHF=EBS 0.8831 0.8841 -0.07% -8.70% +0.8854 +0.8816
Sterling/Dollar GBP=D3 $1.3585 $1.3502 +0.58% +2.39% +$1.3615 +$1.3495
Dollar/Canadian CAD=D3 1.2790 1.2814 -0.19% -1.55% +1.2827 +1.2775
Aussie/Dollar AUD=D3 $0.7671 $0.7606 +0.87% +9.34% +$0.7679 +$0.7604
Euro/Swiss EURCHF= 1.0842 1.0825 +0.16% -0.09% +1.0863 +1.0828
Euro/Sterling EURGBP= 0.9035 0.9069 -0.37% +6.87% +0.9086 +0.9014
NZ NZD=D3 $0.7189 $0.7148 +0.59% +6.85% +$0.7206 +$0.7148
Dollar/Dollar
Dollar/Norway NOK=D3 8.5720 8.6200 -0.49% -2.22% +8.6215 +8.5560
Euro/Norway EURNOK= 10.5268 10.5433 -0.16% +7.01% +10.5787 +10.5056
Dollar/Sweden SEK= 8.1952 8.1937 +0.16% -12.33% +8.2084 +8.1655
Euro/Sweden EURSEK= 10.0622 10.0462 +0.16% -3.89% +10.0844 +10.0221