* New Zealand dollar hits highest in more than 2 years
* Commodity-linked currencies gains vs U.S. dollar
* Canadian dollar shy of a two-year high
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(New throughout, updates prices, market activity, comments, FX table; new byline, changes dateline;
previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 1 (Reuters) - The dollar fell on Tuesday to its lowest in 2-1/2 years, as investor
appetite for risk increased on expectations of a solid global recovery and further monetary and fiscal
stimulus from the United States.
The greenback extended losses after news of proposed COVID relief as well as reports that U.S.
Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi were due to speak at 1
p.m. EST about a stimulus package. The proposed relief bill was $908 billion and would fund measures through March 31, including $228
billion in additional paycheck protection program funds for hotels, restaurants and other small
businesses.
"The theme of the financial markets following the U.S. election has been one of risk-on across all
asset classes," said James Rider, research director at currency advisory firm FXvolResearch in Vancouver,
Canada, a view consistent with a weak dollar trend.
"The risk-on sentiment has been directly correlated to the growing confidence that the election
outcome is settled and that there will be a peaceful transition of power," he added.
Currencies that trade higher in times of risk appetite such as the euro, sterling, as well as the
Australian, New Zealand, and Canadian dollars all rose against the greenback.
The euro was near a three-month high, while the New Zealand dollar rose to its highest in more than
two years.
Bitcoin was also on a tear, hitting a record high just under $20,000 BTC=BTSP . The virtual currency
was last down 1.9% t $19,320.
In mid-morning trading, the dollar index fell 0.6% to 91.428 =USD , hitting a more than two-year low
of 91.405.
The dollar extended losses as well after mixed U.S. economic data showing a rise in construction
spending, but a decline in a manufacturing index. The euro hit a 2-1/2-year high vs dollar above $1.20 and was last 0.8% at $1.2029.
Nagging worries about rising coronavirus cases have not provided the dollar with much safe-haven
support. Speculation is growing that the Fed will act to support the economy through a tough winter before
vaccinations become available.
In prepared remarks released late Wednesday on the eve of his Senate testimony, Fed Chairman Jerome
Powell said a slowing recovery and a surging pandemic mean the United States is entering a "challenging"
few months, with potential deployment of a vaccine still facing hurdles of production and mass
distribution before its impact on the economy becomes clear. The Fed meets to set policy on Dec. 15 and 16.
In separate testimony to be delivered at the same hearing, Treasury Secretary Steven Mnuchin said the
economy had made "remarkable progress" recovering ground lost due to the pandemic, and that any further
government help should be targeted to "workers and small businesses that continue to struggle," as opposed
to spread broadly in the economy.
Powell and Mnuchin testified on the CARES Act, under which Congress made $2 trillion available to the
Treasury as coronavirus aid, a large portion of which was aimed to support the FOMC's lending programs.
The New Zealand dollar hit its highest since June 2018 and was last up 0.7% at US$0.7054 NZD=D3 .
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Currency bid prices at 10:58AM (1558 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $91.4640 91.9490 -0.52% +0.00% +91.9640 +91.4050
Euro/Dollar EUR=EBS $1.2030 $1.1923 +0.88% +7.29% +1.2042 +1.1927
Dollar/Yen JPY=D3 104.4800 104.3350 +0.14% -3.80% +104.5750 +104.2050
Euro/Yen EURJPY= 125.67 124.39 +1.03% +3.05% +125.7900 +124.4100
Dollar/Swiss CHF=EBS 0.9011 0.9092 -0.87% -6.87% +0.9087 +0.9006
Sterling/Dollar GBP=D3 1.3362 1.3325 +0.29% +0.75% +1.3406 +1.3316
Dollar/Canadian CAD=D3 1.2965 1.3008 -0.32% -0.19% +1.3008 +1.2944
Aussie/Dollar AUD=D3 0.7352 0.7345 +0.10% +4.77% +0.7373 +0.7342
Euro/Swiss EURCHF= 1.0838 1.0836 +0.02% -0.13% +1.0859 +1.0833
Euro/Sterling EURGBP= 0.9000 0.8952 +0.54% +6.46% +0.9007 +0.8930
NZ NZD=D3 0.7053 0.7010 +0.61% +4.82% +0.7062 +0.7011
Dollar/Dollar
Dollar/Norway NOK=D3 8.8435 8.9025 -0.67% +0.80% +8.9005 +8.8200
Euro/Norway EURNOK= 10.6400 10.5995 +0.38% +8.15% +10.6465 +10.5648
Dollar/Sweden SEK= 8.5111 8.5725 +0.05% -8.95% +8.5793 +8.5038
Euro/Sweden EURSEK= 10.2385 10.2329 +0.05% -2.20% +10.2430 +10.1958