- Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds details, updates prices; previous LONDON)
The safe-haven U.S. dollar dipped on Monday and riskier currencies outperformed as risk appetite improved on optimism that lawmakers in Washington will reach a deal for new stimulus to blunt the economic impact of the coronavirus.
Stocks opened higher on Monday on the stimulus hopes and as doctors said that U.S. President Donald Trump could be discharged from the hospital where he is being treated for COVID-19.
“There is definitely some more optimism around fiscal stimulus coming down the pike,” said Erik Nelson, a macro strategist at Wells Fargo in New York.
U.S. House Speaker Nancy Pelosi said on Sunday progress was being made on coronavirus relief legislation.
Failure to reach a deal, however, would likely be positive for the dollar, which on Monday fell 0.41% against a basket of major currencies =USD .
“We think that the prospects for stimulus before the election are still very low,” Nelson said. “We’re of the view that we should fade this dollar weakness we’re seeing today, and in particular against some of these higher risk currencies like the Norwegian krone or the Australian dollar.”
The euro EUR= gained 0.57% to $1.1783, the highest since Sept. 21. The Australian dollar AUD= rose 0.35% to $0.7187 and the greenback dipped 0.76% to 9.2296 krone NOK= .
Trump's COVID-19 diagnosis is adding an extra layer of uncertainty to how the U.S. Nov. 3 presidential election will play out, and what it could mean for the greenback.
"There isn’t a clear consensus on how the dollar should trade on this degree of political uncertainty in the U.S.," said Jane Foley, senior FX strategist at Rabobank.
Trump could be discharged from the hospital where he is being treated for COVID-19 as soon as Monday, according to his doctors, although his condition remained unclear and outside experts warned it could be severe.
The U.S. Federal Reserve will release minutes from its September meeting on Wednesday and the European Central Bank will release its latest meeting minutes on Thursday.
Sterling GBP= gained 0.43% to $1.2986. British Prime Minister Boris Johnson and the head of the EU's executive, Ursula von der Leyen, agreed in a phone call on Saturday to step up Brexit talks to close "significant gaps" barring a new trade partnership.
======================================================== Currency bid prices at 9:38AM (1338 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1783 $1.1716 +0.57% +5.11% +1.1786 +1.1708 Dollar/Yen JPY= 105.5500 105.3300 +0.21% -3.04% +105.6700 +105.3000 Euro/Yen EURJPY= 124.41 123.39 +0.83% +2.02% +124.4200 +123.3700 Dollar/Swiss CHF= 0.9147 0.9209 -0.67% -5.49% +0.9207 +0.9149 Sterling/Dollar GBP= 1.2986 1.2931 +0.43% -2.06% +1.2987 +1.2901 Dollar/Canadian CAD= 1.3263 1.3307 -0.33% +2.13% +1.3303 +1.3260 Australian/Doll AUD= 0.7187 0.7162 +0.35% +2.36% +0.7191 +0.7157 arEuro/Swiss EURCHF= 1.0779 1.0781 -0.02% -0.67% +1.0787 +1.0736 Euro/Sterling EURGBP= 0.9073 0.9053 +0.22% +7.32% +0.9089 +0.9053 NZ NZD= 0.6645 0.6635 +0.15% -1.35% +0.6654 +0.6631 Dollar/DollarDollar/Norway NOK= 9.2296 9.3000 -0.76% +5.14% +9.3359 +9.2244 Euro/Norway EURNOK= 10.8770 10.9200 -0.39% +10.57% +10.9392 +10.8586 Dollar/Sweden SEK= 8.8816 8.9396 +0.08% -4.98% +8.9397 +8.8843 Euro/Sweden EURSEK= 10.4686 10.4600 +0.08% -0.01% +10.4865 +10.4470
