* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, Feb 1 (Reuters) - The safe-haven dollar found support
at the start of a new week with traders remaining wary amid the
battle on Wall Street between hedge funds and retail investors.
Wrangling over the size of President Joe Biden's fiscal
stimulus package and delays to vaccine rollouts also weighed on
sentiment, stoking demand for safer assets. "What happens in the next one day to one week to one month
is probably in the hands of risk sentiment," said Ray Attrill,
head of forex strategy at National Australia Bank in Sydney. "If
we do see a deeper equity correction, I've got no doubt that the
U.S. dollar can show a little bit more strength."
The dollar index =USD was little changed at 90.58 early on
Monday, holding on to last week's gain of about half a percent,
as Asian stocks traded weaker for a fifth session. The gauge has been largely range-bound in recent weeks,
after bouncing from a nearly three-year low of 89.206 at the
start of the year.
Investors are trying to evaluate whether an almost 7%
selloff in 2020 -- driven by expectations of a global pandemic
recovery amid massive fiscal spending and continued ultra-easy
monetary policy -- is likely to continue.
A group of Republican senators are urging Biden, a Democrat,
to significantly downsize his proposed $1.9 trillion pandemic
relief package, and have floated a $600 billion alternative.
Elsewhere, Wall Street is bracing for more volatility after
retail investor groups that organised via social media targeted
hedge fund short positions, with some traders worried that the
wild swings in GameStop and other stocks could foreshadow a
market correction. The dollar slipped 0.1% to 104.63 yen JPY=EBS , further
retreating from the 2-1/2-month high of 104.94 touched on
Friday.
The euro EUR=EBS was little changed at $1.2132, as it
continued to dither in a narrow range.
The riskier Aussie dollar dipped following new signs of
weakness in the recovery in China, a key customer for Australian
commodities.
Australia's currency AUD= sank as low as 76.06 U.S. cents
early in the session before recovering to be little changed at
76.307 cents.
Data from the weekend showed China's factory recovery slowed
in January, hobbled by a wave of coronavirus infections.
Currency bid prices at 10:30AM (130 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2135 $1.2139 -0.02% -0.68% +1.2145 +1.2120
Dollar/Yen JPY=D3 104.6070 104.7250 +0.01% +1.40% +104.7820 +104.6800
Euro/Yen EURJPY= 126.95 127.07 -0.09% +0.02% +127.1200 +126.9000
Dollar/Swiss CHF=EBS 0.8906 0.8909 -0.01% +0.69% +0.8919 +0.8908
Sterling/Dollar GBP=D3 1.3725 1.3693 +0.26% +0.49% +1.3726 +1.3692
Dollar/Canadian CAD=D3 1.2776 1.2775 +0.05% +0.38% +1.2817 +1.2780
Aussie/Dollar AUD=D3 0.7641 0.7642 +0.01% -0.66% +0.7642 +0.7606
NZ NZD=D3 0.7188 0.7184 +0.07% +0.11% +0.7189 +0.7151
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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World FX rates https://tmsnrt.rs/2RBWI5E
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