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FOREX-U.S. dollar slides to 2-1/2-year low on vaccine optimism

Published 12/04/2020, 05:00 AM
Updated 12/04/2020, 05:10 AM
USD/SEK
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DX
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* Euro hits fresh 2-1/2-year high vs dollar
* Dollar falls to lowest since January 2015 vs Swiss franc
* U.S. jobless claims fall in latest week
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Updates currency values throughout, add analyst comment)
By Gertrude Chavez-Dreyfuss and Suzanne Barlyn
NEW YORK, Dec 3 (Reuters) - The dollar plunged on Thursday to its weakest level in more than 2-1/2
years, while the euro gained, as signs of progress toward U.S. fiscal stimulus and optimism about COVID-19
vaccines kept investors upbeat.
In afternoon trading, the dollar index, a measure of its value against six major currencies, fell 0.3%
to 90.72. Its session low of 90.504 =USD was the lowest since April 2018.
With its safe-haven allure evaporating, the greenback also tumbled to a nearly six-year low against
the Swiss franc.
In a possible sign of progress, Democratic House of Representatives Speaker Nancy Pelosi and
Republican Senate Majority Leader Mitch McConnell consulted on coronavirus aid. Republicans have been
pushing for a slim $500 billion measure that Democrats had rejected as too small to address the raging
pandemic. Investors have sold safe-haven dollars as risk appetite has been growing on optimism about COVID-19
vaccines, a day after the UK approved Pfizer Inc's vaccine. "The dollar bears are not going away any time soon," said Edward Moya, senior market analyst at OANDA
in New York. "Every day we get closer to the delivering of coronavirus vaccines and there's just a whole
lot of optimism that you're going to see a much quicker recovery in 2021."
The dollar was pressured by U.S. data showing initial claims for state unemployment benefits fell
75,000 to a seasonally adjusted 712,000 for the week ended Nov. 28. Economists polled by Reuters had
forecast 775,000 applications.
Although tensions between the United States and China pose a downside risk, global markets expect
improved trade relations under President-elect Joe Biden's administration. The euro soared to its highest since April 2018 at $1.2174 and was last at $1.2142, up 0.2% EUR=EBS .
The pound was up 0.7% against the dollar at $1.3452 GBP=D3 , as Brexit negotiations continued. It
pared gains after the BBC's political editor Laura Kuenssberg said talks hit a snag late Thursday, with
the European bloc introducing new elements. The European Central Bank said it will provide further stimulus to help the euro zone when it meets on
Dec. 10. Market participants will pay attention to any comments about the euro's strength.
The Australian dollar - seen as a liquid proxy for risk - was up 0.4% on the day at US$0.7445
AUD=D3 , after earlier hitting its highest level since August 2018.
The New Zealand dollar also touched fresh 2-1/2-year highs above US$0.71 and last traded up 0.23% on
the day at US$0.7080 NZD=D3 .
The dollar fell to the lowest in more than a week versus the yen and last traded down 0.4% at 103.98
yen JPY=EBS . The greenback also dropped 0.36% against the Swiss franc to 0.8917 franc CHF=EBS , after
sinking to its lowest level since January 2015.


========================================================
Currency bid prices at 2:41PM (1941 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $90.7080 91.0220 -0.34% +0.00% +91.0930 +90.5040
Euro/Dollar EUR=EBS $1.2142 $1.2117 +0.21% +8.30% +1.2175 +1.2101
Dollar/Yen JPY=D3 103.9400 104.5650 -0.70% -4.40% +104.5300 +103.6850
Euro/Yen EURJPY= 126.19 126.47 -0.22% +3.48% +126.6500 +126.0400
Dollar/Swiss CHF=EBS 0.8915 0.8949 -0.37% -7.86% +0.8953 +0.8892
Sterling/Dollar GBP=D3 1.3452 1.3373 +0.60% +1.43% +1.3499 +1.3353
Dollar/Canadian CAD=D3 1.2859 1.2917 -0.44% -1.01% +1.2940 +1.2853
Aussie/Dollar AUD=D3 0.7446 0.7415 +0.42% +6.13% +0.7450 +0.7398
Euro/Swiss EURCHF= 1.0825 1.0838 -0.12% -0.25% +1.0842 +1.0817
Euro/Sterling EURGBP= 0.9025 0.9066 -0.45% +6.75% +0.9070 +0.8999
NZ NZD=D3 0.7079 0.7065 +0.23% +5.23% +0.7104 +0.7051
Dollar/Dollar
Dollar/Norway NOK=D3 8.7535 8.8130 -0.54% -0.08% +8.8455 +8.7415
Euro/Norway EURNOK= 10.6300 10.6600 -0.28% +8.05% +10.7140 +10.6314
Dollar/Sweden SEK= 8.4444 8.4632 +0.00% -9.66% +8.4981 +8.4228
Euro/Sweden EURSEK= 10.2541 10.2543 +0.00% -2.06% +10.3040 +10.2470

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Euro rises https://tmsnrt.rs/2JmhjME
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