- Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds details on stimulus talks, updates prices)
The dollar fell to three-week lows on Friday on optimism that a deal for new U.S. stimulus would be reached, and as investors bet that Democrat Joe Biden is more likely to win the U.S. presidency and offer a larger economic package.
U.S. House Speaker Nancy Pelosi said she would resume talks on a possible COVID-19 stimulus package with Treasury Secretary Steven Mnuchin on Friday, while Senate Republicans voiced doubts that a deal can be reached before the Nov. 3 election.
Republican President Donald Trump, who initially withdrew from the negotiations this week only to regain interest in forging a bipartisan accord, said he was open to a larger deal.
“It seems like, at least in the White House, there is more of a sense of urgency that it needs to be done,” said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto. However, “the key question for us is whether or not the Senate Republicans are going to go with it … they don’t seem to be united.”
“I think we’re more or less in a standstill until we get some more clarity on whether or not this stimulus package is going to go through,” Rai said.
The dollar index against a basket of major currencies =USD fell 0.54% to 93.05, the lowest since September 21, and fell below its 50-day moving average for the first time since then. It has held within a range from 91.74 to 94.75 since late July.
The euro EUR= rose 0.57% to $1.1825. The greenback weakened 0.39% against the Japanese yen JPY= to 105.60 yen.
The U.S. currency also fell on rising expectations that Biden will win the Nov. 3 election, and that Democrats could win the Senate. A Democratic victory would likely result in larger stimulus, which would be negative for the dollar.
Rising expectations of a Biden victory has also boosted appetite for currencies that have been hurt by the trade war between Washington and Beijing, with the Chinese currency the biggest beneficiary.
The offshore yuan CNH= strengthened to 6.6778, the strongest since April 2019. The British pound rose, brushing off worse than expected UK growth data as investors became more optimistic about a Brexit deal being reached ahead of a key European Council summit next week.
Sterling GBP= gained 0.79% to $1.3035.
======================================================== Currency bid prices at 2:58PM (1858 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1825 $1.1758 +0.57% +5.49% +1.1828 +1.1754 Dollar/Yen JPY= 105.6000 106.0100 -0.39% -2.99% +106.0400 +105.6200 Euro/Yen EURJPY= 124.87 124.69 +0.14% +2.41% +125.0900 +124.5300 Dollar/Swiss CHF= 0.9098 0.9167 -0.75% -5.99% +0.9177 +0.9098 Sterling/Dollar GBP= 1.3035 1.2933 +0.79% -1.69% +1.3040 +1.2922 Dollar/Canadian CAD= 1.3130 1.3194 -0.49% +1.11% +1.3202 +1.3115 Australian/Doll AUD= 0.7233 0.7166 +0.93% +3.02% +0.7239 +0.7161 arEuro/Swiss EURCHF= 1.0759 1.0780 -0.19% -0.86% +1.0789 +1.0755 Euro/Sterling EURGBP= 0.9068 0.9087 -0.21% +7.26% +0.9131 +0.9069 NZ NZD= 0.6661 0.6572 +1.35% -1.11% +0.6670 +0.6576 Dollar/DollarDollar/Norway NOK= 9.1453 9.2623 -1.26% +4.18% +9.2751 +9.1442 Euro/Norway EURNOK= 10.8151 10.8940 -0.72% +9.93% +10.9109 +10.8115 Dollar/Sweden SEK= 8.7899 8.8565 -0.25% -5.96% +8.8736 +8.7860 Euro/Sweden EURSEK= 10.3940 10.4202 -0.25% -0.72% +10.4510 +10.3836
