* Profit-taking prompts pause in dollar slide
* Dollar index up 0.2% but set for weekly loss of 1%
* Sterling on course for best week in six months
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SINGAPORE, Dec 18 (Reuters) - The dollar took a breather on
Friday after enduring a week-long beating that has pushed it
below major support levels as its slide sucked in more short
sellers keen to make an easy buck.
Traders in Asia skimmed some profits from the big moves,
which had even sent the greenback to a nine-month low against
the safe-haven yen while the Japanese currency was falling
against the likes of the rallying euro, Aussie and kiwi. AUD/
The dollar was 0.3% stronger at 103.39 yen JPY= on Friday
and rose by about the same margin against the Australian and New
Zealand dollars. It gained about 0.2% against the euro EUR= .
Still, it is down 0.6% against the yen for the week and had
fallen below September's low of 103.18 yen on Thursday. It is
also set for a seventh consecutive weekly drop against the
Antipodeans and a 1.1% drop against the euro.
Sterling GBP= is on course for a 2.4% weekly gain on the
dollar, its best weekly rise in six months, fuelled by hopes of
a Brexit trade deal breakthrough before the end of the year.
"The bigger picture here is that the market is getting
hopeful for some resolution of Brexit and (U.S.) fiscal stimulus
talks," said Bank of Singapore currency analyst Moh Siong Sim.
Even soft U.S. economic data, rather than driving a safety
bid for dollars, is increasing investors' expectations for a
government spending package, Sim said, which would lift
consumption and risk appetite and weigh on the greenback.
Against a basket of currencies =USD the dollar rose 0.15%
to 89.986 - barely above the 2-1/2-year low of 89.723 it made on
Thursday. The dollar index is down 1% for the week so far and
has fallen 12.6% from a three-year peak in March.
Bitcoin BTC=BTSP was steady in Asia but has rocketed
almost 20% this week to record levels above $23,000 as flows
have poured in from mainstream investors who are beginning to
view it as an inflation-protected wealth store. DEALTALK
Heading into the weekend traders are keenly focused on the
progress of U.S. fiscal stimulus talks and Brexit trade
negotiations to set the tone for the last weeks of the year.
A new potential roadblock to a $900 billion U.S. relief bill
emerged in the Congress on Thursday as some Senate Republicans
insisted on ensuring that expiring Federal Reserve lending
programs cannot be revived. Britain and the European Union also struck a downbeat tone
about the likelihood of an agreement on Thursday, but traders
are choosing to stick with bets on resolution in both cases.
"For now the narrative of global growth, and broadening of
the recovery, favours risk-sensitive currencies like the Aussie
and the kiwi," said Rodrigo Catril, National Australia Bank's
senior currency strategist in Sydney.
"More of the same is to be expected in 2021."
Elsewhere on Friday the Bank of Japan extended its aid
scheme for corporate lending and kept other policy settings
steady, as expected. It also pledged to begin an examination on
more effective ways to achieve its 2% inflation
target. The Norwegian crown NOK= handed back some of yesterday's
sharp gains which followed hints at rate hikes by the central
bank and the South Korean won KRW= was also weighed by a new
wave of coronavirus cases which is straining hospitals.
The dollar was last up half a percent on the won and had
punched through its 20-day moving average to hit 1,099 won.
The Thai baht THB=TH rose to a seven-year high on hopes
for inflows after Thailand eased travel restrictions on Thursday
and as investors bet a warning from Washington may temper
central bank efforts to restrain the baht's recent rise.
EMRG/FRX
A German sentiment survey and U.S. consumer sentiment data
are also due later on Friday.
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Currency bid prices at 12:59PM in Singapore (0459 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2241 $1.2270 -0.24% +9.18% +1.2274 +1.2239
Dollar/Yen JPY=D3 103.4450 103.0700 +0.40% -4.73% +103.4750 +103.1300
Euro/Yen EURJPY= 126.61 126.46 +0.12% +3.82% +126.7000 +126.4300
Dollar/Swiss CHF=EBS 0.8850 0.8840 +0.12% -8.53% +0.8853 +0.8840
Sterling/Dollar GBP=D3 1.3525 1.3586 -0.43% +1.99% +1.3590 +1.3520
Dollar/Canadian CAD=D3 1.2747 1.2720 +0.20% -1.89% +1.2749 +1.2717
Aussie/Dollar AUD=D3 0.7593 0.7627 -0.45% +8.22% +0.7628 +0.7593
NZ NZD=D3 0.7127 0.7155 -0.36% +5.94% +0.7151 +0.7126
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX