Dollar falls to new 2-1/2-year low Euro, Swiss franc headed for...

• Dollar falls to new 2-1/2-year low
• Euro, Swiss franc headed for best week in a month
• U.S. November jobs data disappoints
• Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Recasts, adds new comment, U.S. data, FX table, updates prices, changes byline, dateline; previous LONDON)

The dollar fell to a fresh 2-1/2-year low on Friday, on track for its worst week in a month, as investors shrugged off a U.S. non-farm payrolls report that badly missed expectations in November and focused on a flurry of positive vaccine news.

Upbeat announcements on vaccinations have helped drive a rally in riskier currencies, while actions taken by the Federal Reserve have weakened the greenback.

The euro and Swiss franc, in contrast, were headed for their best week against the dollar in a month.

The single currency touched a new 2-1/2-year high, while the Swiss franc rose to its highest in nearly six years.

Data showed that U.S. non-farm payrolls increased by 245,000 jobs last month after rising by 610,000 in October. That was the smallest gain since the jobs recovery started in May.

But "the vaccines, the restart of talks about stimulus and the new administration, and a less confrontational international background, are still going to be the themes that drive the market," said Marvin Loh, senior global macro strategist, at State Street Global Markets in Boston.

In mid-morning trading, the dollar index fell 0.2% to 90.513 =USD , after earlier falling to 90.471, the lowest in more than 2-1/2 years. On the week, the index was down 1.4%, its largest week loss since early November.

"It has been another bad week for the US dollar," analysts at MUFG said in a note. "It will encourage speculators to rebuild short U.S. dollar positions which have been pared in recent months."

The euro has been one of the biggest winners from recent dollar weakness, breaking decisively above $1.20 this week The single currency hit a two-and-a-half-year high of $1.2177, just above the previous day's benchmark and was last up 0.1% at $1.2161 EUR=EBS .

Against the Swiss franc, the dollar continued its descent, dropping to a nearly six-year low of 0.8886 franc CHF=EBS . The greenback was last down 0.2% at 0.8897.

The dollar though gained 0.2% against the yen JPY= at 104.02 yen JPY=EBS .

Ulas Akincilar, head of trading at the online trading platform, INFINOX, said that despite the weaker-than-expected U.S. employment data, it was a "finely balanced jobs report."

"The calculation is that the slowing jobs market will spur U.S. lawmakers into agreeing a fiscal stimulus to match the Fed's monetary support. And yet the slowdown is not so bad as to send investors running for the hills," he added.

Sterling, meanwhile, rose 0.5% against the dollar to $1.3514 GBP=D3 , helped by the greenback's broad weakness. It hit a 2-1/2-year peak versus the greenback on expectations that Britain will be able to clinch a post-Brexit trade deal with the European Union.

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	Currency bid prices at 10:20AM (1520 GMT) 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Dollar index	  =USD	   90.6180		90.6930	 -0.07%		 +0.00%	  +90.7670	+90.4710 
 Euro/Dollar	   EUR=EBS	$1.2149		$1.2145	 +0.03%		 +8.37%	  +1.2177	 +1.2132 
 Dollar/Yen		JPY=D3	 104.1450	   103.9000	+0.25%		 -4.11%	  +104.1500   +103.7800 
 Euro/Yen		  EURJPY=	126.51		 126.11	  +0.32%		 +3.74%	  +126.6700   +126.0500 
 Dollar/Swiss	  CHF=EBS	0.8900		 0.8910	  -0.10%		 -8.02%	  +0.8917	 +0.8886 
 Sterling/Dollar   GBP=D3	 1.3505		 1.3448	  +0.43%		 +1.83%	  +1.3538	 +1.3409 
 Dollar/Canadian   CAD=D3	 1.2809		 1.2864	  -0.43%		 -1.40%	  +1.2873	 +1.2805 
 Aussie/Dollar	 AUD=D3	 0.7431		 0.7442	  -0.13%		 +5.91%	  +0.7443	 +0.7410 
 Euro/Swiss		EURCHF=	1.0811		 1.0818	  -0.06%		 -0.38%	  +1.0848	 +1.0811 
 Euro/Sterling	 EURGBP=	0.8994		 0.9026	  -0.35%		 +6.39%	  +0.9067	 +0.8984 
 NZ				NZD=D3	 0.7046		 0.7078	  -0.44%		 +4.73%	  +0.7079	 +0.7028 
 Dollar/Dollar																				   

 Dollar/Norway	 NOK=D3	 8.7770		 8.7370	  +0.31%		 -0.09%	  +8.7975	 +8.7480 
 Euro/Norway	   EURNOK=	10.6638		10.6288	 +0.33%		 +8.40%	  +10.6826	+10.6182 
 Dollar/Sweden	 SEK=	   8.4487		 8.4256	  +0.10%		 -9.61%	  +8.4578	 +8.4190 
 Euro/Sweden	   EURSEK=	10.2642		10.2539	 +0.10%		 -1.96%	  +10.2820	+10.2440