* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar loses out as risk appetite improves
* Vaccine, Biden transition boost sentiment
* Bitcoin trades near an all-time high
By Stanley White
TOKYO, Nov 25 (Reuters) - The dollar nursed losses on
Wednesday as progress in developing a novel coronavirus vaccine
and expectations for a fiscal boost from a new U.S. government
triggered a shift of funds from the greenback to riskier assets.
The U.S. currency teetered near a two-month low against the
Australian dollar and a two-year low against the New Zealand
dollar, both considered barometers of risk sentiment due to
their close ties with the global commodities trade.
Bitcoin, a cryptocurrency known for extreme volatility, also
traded near an all-time high, in a further sign that investors
are growing more comfortable taking on riskier positions.
The U.S. dollar is expected to continue to fall as progress
on a vaccine and the expected choice of former Federal Reserve
Chair Janet Yellen as the next U.S. Treasury secretary relieved
two big uncertainties for investors.
"Rising yields may lend the dollar some support, but the
overall direction is it will head lower," said Junichi Ishikawa,
senior foreign exchange strategist at IG Securities in Tokyo.
"The trend has shifted to favour risk assets. Yellen will
team up with the Fed and support the economy. U.S. rates will
remain low for a long time."
The dollar stood at $1.1904 against the euro EUR=EBS on
Wednesday, close to a two-week low.
The British pound GDP=D3 bought $1.3349, close to its
highest in more than two months.
Against the yen JPY=D3 , the dollar held steady at 104.46.
Research suggesting that a COVID-19 vaccine could be
available before the end of the year has sent U.S. stocks
surging to record highs and reduced the appeal of holding the
dollar as a safe-harbour currency. Risk appetite has also improved after U.S. President Donald
Trump's administration began cooperating with the
President-elect Joe Biden's transition team, and after reports
that Yellen, an advocate of more fiscal spending, will take the
top job at the Treasury. The dollar index =USD , pitting the dollar against a basket
of six major currencies, was at 92.121 after falling 0.4% on
Tuesday.
The onshore yuan CNY=CFXS rose to 6.5799 per dollar on
hopes for better Sino-U.S. ties under Biden. Other Asian
currencies also edged higher.
The Antipodean currencies were already on the front foot as
investors unwound bets for additional monetary easing in both
countries.
Improving risk appetite means the Australian dollar's
AUD=D3 next target is its high of $0.7413 on Sept. 1.
The New Zealand dollar NZD=D3 , which has rallied 5.5% so
far this month, is trading just shy of its strongest since June
2018.
Bitcoin BTC=BTSP , the most popular cryptocurrency, eased
slightly to $18,852 but was still near its record of $19,666
from December 2017.
========================================================
Currency bid prices at 2:45PM (0545 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1904 $1.1895 +0.08% +6.18% +1.1910 +1.1888
Dollar/Yen JPY=D3 104.4650 104.4300 +0.03% -3.83% +104.5950 +104.4600
Euro/Yen EURJPY= 124.36 124.17 +0.15% +1.98% +124.4700 +124.2000
Dollar/Swiss CHF=EBS 0.9110 0.9111 -0.02% -5.86% +0.9114 +0.9106
Sterling/Dollar GBP=D3 1.3349 1.3361 -0.01% +0.72% +1.3366 +1.3355
Dollar/Canadian CAD=D3 1.3008 1.2997 +0.06% +0.11% +1.3008 +1.2991
Aussie/Dollar AUD=D3 0.7345 0.7361 -0.20% +4.70% +0.7373 +0.7346
NZ NZD=D3 0.6974 0.6979 -0.04% +3.67% +0.6988 +0.6970
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX