* Euro, NZ dollar hit highest in more than 2 years
* Sterling rises to three-month high
* U.S bipartisan stimulus proposal sinks greenback
* Pelosi, Mnuchin meet on COVID relief
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds analyst comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 1 (Reuters) - The dollar stumbled on Tuesday to its lowest level in more than 2-1/2
years, as investors' appetite for risk increased on prospects of further fiscal stimulus from the United
States as well as expectations of a solid global recovery.
News of a proposed COVID bill sank the dollar further, as did the resumption of talks between U.S.
Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi on Tuesday about a
stimulus package. The proposed relief bill of $908 billion would fund measures through March 31, including $228 billion
in additional paycheck protection funds for hotels, restaurants and other small businesses.
"Traders are looking for any reason to bid risk up and that comes at the cost of the dollar," said
John Doyle, vice president of dealing and trading at Tempus, Inc. in Washington.
"When you get a report that a bipartisan stimulus deal can get done after hopes have been dashed, it's
just another reason to bid risk up and sell the dollar," he added.
Pelosi said on Tuesday Mnuchin would review both bipartisan Senate proposal as well her and Senator
Charles Schumer's COVID relief plan. Currencies that thrive in times of risk appetite such as the euro, sterling, as well as the
Australian, and New Zealand dollars all rose against the greenback.
The euro and the New Zealand dollar both hit 2-1/2-year highs.
Bitcoin was also on a tear, hitting a record high just under $20,000 BTC=BTSP . The virtual currency
though was last down 3.8% at $18,961.
In afternoon trading, the dollar index fell 0.7% to 91.318 =USD , hitting 91.263, the lowest since
late April 2018.
The euro hit a 2-1/2-year high vs dollar at $1.20.55 and last traded 1% higher at $1.2049.
"The technical argument in favor of additional euro gains in the short- to medium-term is fairly
compelling," said Scotiabank in a research note.
"November price action overall was bullish for the euro, the break out from the (second half)
consolidation suggests upside potential towards $1.25-$1.26."
Sterling climbed to a three-month peak versus the dollar after Times Radio said Brexit trade deal
talks have entered the "tunnel" stage of negotiations. The "tunnel" is a term for an intense final stage
of secretive, make-or-break negotiations. The pound was last up 0.7% at $1.3410 GBP=D3 .
Nagging worries about rising coronavirus cases have not provided the dollar with much safe-haven
support. Speculation is also growing that the Federal Reserve will act to support the economy through a
tough winter before vaccinations become available. That should further weigh on the dollar.
The Fed meets to set policy on Dec. 15-16.
Fed Chairman Jerome Powell and Treasury's Mnuchin on Tuesday also urged Congress to provide more help
for small businesses amid a surging coronavirus pandemic and concern that relief from a vaccine may not
arrive in time to keep them from failing. The New Zealand dollar hit its highest level since June 2018 and was last up 0.7% at US$0.7055
NZD=D3 , while the Canadian dollar CAD=D3 rose versus the greenback, which dropped 0.4% to C$1.2954.
Data showed Canada's economy grew by 40.5% on an annualized basis in the third quarter, rebounding from a
historic plunge in the second. CAD/
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Currency bid prices at 3:21PM (2021 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $91.2920 91.9490 -0.70% +0.00% +91.9640 +91.2630
Euro/Dollar EUR=EBS $1.2050 $1.1923 +1.07% +7.48% +1.2055 +1.1927
Dollar/Yen JPY=D3 104.3700 104.3350 +0.05% -3.89% +104.5750 +104.2050
Euro/Yen EURJPY= 125.76 124.39 +1.10% +3.13% +125.8200 +124.4100
Dollar/Swiss CHF=EBS 0.9007 0.9092 -0.92% -6.91% +0.9087 +0.8998
Sterling/Dollar GBP=D3 1.3412 1.3325 +0.66% +1.13% +1.3440 +1.3316
Dollar/Canadian CAD=D3 1.2945 1.3008 -0.48% -0.35% +1.3008 +1.2931
Aussie/Dollar AUD=D3 0.7361 0.7345 +0.22% +4.91% +0.7373 +0.7342
Euro/Swiss EURCHF= 1.0853 1.0836 +0.16% +0.01% +1.0859 +1.0833
Euro/Sterling EURGBP= 0.8983 0.8952 +0.35% +6.26% +0.9007 +0.8930
NZ NZD=D3 0.7059 0.7010 +0.70% +4.90% +0.7067 +0.7011
Dollar/Dollar
Dollar/Norway NOK=D3 8.8200 8.9025 -0.85% +0.62% +8.9005 +8.8095
Euro/Norway EURNOK= 10.6309 10.5995 +0.30% +8.06% +10.6465 +10.5648
Dollar/Sweden SEK= 8.4899 8.5725 -0.01% -9.17% +8.5793 +8.4842
Euro/Sweden EURSEK= 10.2318 10.2329 -0.01% -2.27% +10.2435 +10.1958