FOREX-Euro and pound gain as U.S. stimulus, Brexit boost risk appetite

* Pound hits two-and-a-half-year high on Brexit outlook
* Swiss National Bank sticks to policy despite U.S.
criticism
* Bitcoin rises to record high above $22,800
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Julien Ponthus
LONDON, Dec 17 (Reuters) - The dollar fell to its lowest in
more than two years against the British pound and euro on
Thursday after the Federal Reserve stuck to its current policy
while hopes for more U.S. stimulus and a post-Brexit trade deal
boosted risk appetite.
Congressional negotiators were closing in on a $900 billion
COVID-19 aid bill in the United States, according to lawmakers
and aides. "While we expect stocks to benefit further from positive
news on vaccine rollouts and U.S. fiscal support, the same
cannot be said for the U.S. dollar", said Mark Haefele, chief
investment officer at UBS GWM. "Safe-haven demand for the dollar
is being eroded by a broadening global recovery."
The dollar index =USD continued to retreat as European
markets opened, falling to 89.88 against a basket of major
currencies after breaking below 90 for the first time since
April 2018.The dollar also s lid to 103.20 yen JPY=EBS .
The Federal Reserve on Wednesday said it would keep
funnelling cash into financial markets until the U.S. economic
recovery is secure. The promise of long-term help fell short of
some investors' hopes of an immediate move. The dollar index rose after the Fed's announcement, but the
respite was short-lived.
Meanwhile, optimism the European Union and the UK will
finally reach a post-Brexit trade deal boosted the pound, which
rose to $1.3578 GBP= , its highest level since May 2018.
On Thursday, UK Home Secretary Priti Patel said her
government and the EU were in a "tunnel" of negotiations but
that her country was ready to face the possibility of no deal.
The euro traded at $1.2238 EUR=EBS , its highest since
April 2018.
The Swiss franc continued to rise and was at six-year highs
of $0.8830 after the Swiss National Bank stuck to its readiness
to intervene in currency markets despite being labelled a
currency manipulator by the United States.
The Treasury said that through June 2020 both Switzerland
and Vietnam had intervened in currency markets to prevent
effective balance of payments adjustments. China's onshore yuan CNY=CFXS traded at 6.5287 per dollar
and its offshore counterpart CNH=EBS hands at 6.5058, both
close to mid-2018 highs.
The Australian dollar touched 0.7620 U.S. cents AUD= , the
highest since June 2018.
Also, Bitcoin BTC=BTSP set an a record high on Thursday,
after rising over 6.5% to $22,891, just a day after passing the
$20,000 milestone for the first time.