* EU leaders go into fourth day of EU negotiations
* Frugal northern states seek less in grants from recovery fund
* U.S. dollar index rises from 6-week low
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, July 20 (Reuters) - The euro slipped against the dollar on Monday, as investors booked
profits on earlier gains that took it to a more than four-month high on hopes the European Union would
agree on a recovery fund for economies in the region hit by the COVID-19 pandemic.
The fund is expected to be around 750 billion euros ($857.93 billion), of which 390 billion euros
could be offered as grants.
EU leaders have made progress in Brussels after three days of talks, but they remain at odds over the
composition of the recovery fund. The fund's backers initially proposed 500 billion euros of grants and
250 billion of loans.
Some countries objected to that much in grants. They saw 350 billion euros as the maximum, but showed
signs of compromising. "We can see some profit-taking in the euro," said Shaun Osborne, chief FX strategist at Scotiabank in
Toronto. "But I can still see it as well-supported on weakness as this deal is good for the European
economy."
The euro hit a high of $1.1467 EUR=EBS and was last down 0.1% at $1.1412.
Analysts said the smaller the amount of grants, the more the euro would fall.
The EU summit was originally due to last two days. The fact that it is now continuing into a fourth
day of negotiations is evidence that EU leaders are ready to do everything it takes to maintain unity in
the euro zone, said Jane Foley, senior currency strategist at Rabobank in London
If they agree on a recovery fund, that would boost confidence in the euro regardless of the numbers in
the deal, said Mike Bell, global market strategist at J.P. Morgan Asset Management.
Elsewhere, the U.S. dollar index USD= rose 0.1% to 96.002, recovering from a six-week low hit
earlier in the session. Its gains, though, remain capped by expectations of more stimulus from Europe and
from the United States.
That said, the U.S. Congress is bracing for a battle on the proposed stimulus bill, that could further
boost safe-haven bids for the dollar.
U.S. Senate Democrats are prepared to block Republicans from moving forward on a partisan coronavirus
aid bill, the chamber's top Democrat warned on Monday, as Republican leaders were expected to meet at the
White House to discuss legislation. The dollar rose 0.1% versus the yen to 107.14 JPY=EBS , and was up 0.1% as well against the Swiss
franc to 0.9393 franc CHF=EBS .
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Currency bid prices at 10:11AM (1411 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1415 $1.1426 -0.10% +1.83% +1.1467 +1.1403
Dollar/Yen JPY= 107.1400 106.9900 +0.14% -1.58% +107.5200 +107.0200
Euro/Yen EURJPY= 122.31 122.30 +0.01% +0.30% +122.9700 +122.1900
Dollar/Swiss CHF= 0.9393 0.9384 +0.10% -2.94% +0.9410 +0.9374
Sterling/Dollar GBP= 1.2629 1.2565 +0.51% -4.75% +1.2645 +1.2519
Dollar/Canadian CAD= 1.3550 1.3576 -0.19% +4.34% +1.3600 +1.3550
Australian/Doll AUD= 0.7001 0.6995 +0.09% -0.28% +0.7005 +0.6974
ar
Euro/Swiss EURCHF= 1.0723 1.0723 +0.00% -1.19% +1.0776 +1.0721
Euro/Sterling EURGBP= 0.9037 0.9088 -0.56% +6.90% +0.9138 +0.9032
NZ NZD= 0.6559 0.6556 +0.05% -2.63% +0.6569 +0.6540
Dollar/Dollar
Dollar/Norway NOK= 9.2803 9.2928 -0.13% +5.72% +9.3228 +9.2467
Euro/Norway EURNOK= 10.5940 10.6240 -0.28% +7.69% +10.6353 +10.5848
Dollar/Sweden SEK= 9.0098 9.0334 -0.41% -3.61% +9.0640 +8.9870
Euro/Sweden EURSEK= 10.2864 10.3285 -0.41% -1.75% +10.3395 +10.2871
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Euro jumps to 4-month high https://tmsnrt.rs/3fN2M7r
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