FOREX-Dollar treads water as markets await news on Trump's health

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

By Eimi Yamamitsu
TOKYO, Oct 5 (Reuters) - The dollar held tight ranges
against its peers on Monday as investors awaited clarity on the
health of U.S. President Donald Trump after he tested positive
for the coronavirus, sending markets into safe-haven assets.
"With not a lot of major economic indicators released this
week, the focus all comes down to Trump's illness," said Daisuke
Uno, chief strategist at Sumitomo Mitsui Bank.
"There is a welter of information about the severity of his
condition, and that is making it difficult for market
participants to make a move," Uno said.
Just weeks before the Nov. 3 election, Trump was flown to
hospital for treatment for the coronavirus on Friday, adding
another layer of uncertainty and market volatility as Trump's
re-election campaign seeks to fend off Democratic challenger Joe
Biden.
Doctors treating Trump for COVID-19 told reporters on Sunday
they are monitoring the condition of his lungs after he received
supplemental oxygen, hours before Trump surprised supporters
outside the hospital by riding past in a motorcade. The news came the day after contradictory messages from the
White House caused widespread confusion about the president's
condition.
"Earlier, some traders bought back dollars and U.S. stock
futures immediately after the news came out about Trump briefly
leaving the hospital," Sumitomo Mitsui Bank's Uno said. "But I
don't think it means that he has been completely cured."
The dollar index =USD was little changed at 93.789, while
traders adjusted their positions in safe-harbour currencies.
Against the safe-haven Japanese yen, the dollar rose 0.2% to
105.515 yen JPY=EBS , after making its sharpest fall in more
than a month to reach a one-week low of 104.95 on Friday.
But the greenback edged lower against the Swiss franc to
0.918 CHF=EBS , near a one-week low of 0.9163 it marked on
Wednesday.
Meanwhile, sterling investors awaited cues from final round
of Brexit trade negotiations as the expiry of the transition
period at the end of December approached.
British Prime Minister Boris Johnson and the head of the
EU's executive, Ursula von der Leyen, agreed in a phone call on
Saturday to step up negotiations on a post-Brexit deal.
Johnson said on Sunday while he does not want the transition
period to end without a new trade deal, he believes that Britain
could live with such an outcome. The British pound last stood at $1.2942 GBP=D3 while the
euro changed hands at $1.1723 EUR=EBS .
Investors also await the upcoming vice president
presidential debate on Wednesday.
Expectations that U.S. Congress will pass a stimulus package
to support the pandemic-stricken economy remain low ahead of the
presidential election in November.
U.S. House Speaker Nancy Pelosi on Sunday said progress was
being made on coronavirus relief legislation but had earlier
flagged key areas of disagreement. The focus in markets this week shifts to central bank events
and any clues they offer about the health of the global economy.
The Reserve Bank of Australia holds its policy meeting on
Tuesday while the Federal Reserve and the European Central Bank
release the minutes of their September meetings.