- Yen, Swiss franc rise vs greenback
- Sterling falls vs dollar, euro on Brexit uncertainty
- U.S. stimulus talks in right direction, Kudlow says
- Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds new comment, updates prices)
The dollar slid against most currencies on Monday in choppy trading, as investors looked past the surge in coronavirus cases and ahead to a possible new COVID-19 U.S. stimulus deal and vaccines to fight the pandemic.
Sterling, meanwhile, slumped after Britain and the European Union said on Monday conditions for a Brexit trade deal were "not there."
White House economic adviser Larry Kudlow on Monday said talks on another round of stimulus funding to deal with the deadly coronavirus pandemic are moving in the right direction, and President Donald Trump's administration and Congress are getting closer to agreement.
The United States has experienced increasing numbers of COVID-19 cases, with a death toll of about 283,000.
Negotiations on a relief deal gathered momentum in the U.S. Congress on Friday, as a bipartisan group of lawmakers worked to put the finishing touches on a $908 billion stimulus plan.
"The market expects a stimulus deal to eventually arrive along with the vaccine and those are seen as putting the U.S. recovery at a faster and more sustainable path," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. "That's negative for the dollar."
In addition, the Federal Reserve is expected to make more adjustments to its quantitative easing later this month.
"The question for most is whether this is just the beginning of the U.S. dollar slide and whether the theme has more juice," said Mark McCormick, global head of FX strategy at TD Securities in Toronto.
"The U.S. dollar is likely to slide through the course of 2021. U.S. dollar cycles tend to last six years on average, and this one is just getting started," he added.
The dollar fell 0.2% against the Japanese currency to 104.01 yen JPY=EBS , sliding as well versus the Swiss franc to 0.8904 franc, also down 0.2%.
The greenback also fell against commodity currencies such as the Australian AUD=D3 and New Zealand dollars NZD=D3 as well as the Norwegian crown NOK=D3 .
An index that tracks the dollar against a basket of currencies was little changed at 90.843 =USD , not far from 90.471, its weakest since April 2018.
The British pound came off steep lows and was down 0.4% at $1.3379 GBP=D3 , falling 0.4 as well versus the euro, which last traded up at 90.52 pence EURGBP=D3 .
EU chief Ursula von der Leyen and British Prime Minister Boris Johnson said in a joint statement on Monday that sealing a new trade deal was impossible now "due to remaining differences on critical issues."
But Johnson will go to Brussels in the coming days in an attempt to bridge significant differences in Brexit talks over level playing field, governance and fisheries.
"The market is still betting that at the end of the day, there will be a Brexit deal," said Western Union's Manimbo.
======================================================== Currency bid prices at 3:19PM (2019 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD $90.8340 90.8300 +0.02% +0.00% +91.2410 +90.6120 Euro/Dollar EUR=EBS $1.2114 $1.2121 -0.05% +8.06% +1.2166 +1.2079 Dollar/Yen JPY=D3 104.0150 104.2050 -0.21% -4.26% +104.3050 +103.9800 Euro/Yen EURJPY= 126.01 126.26 -0.20% +3.33% +126.4800 +125.9800 Dollar/Swiss CHF=EBS 0.8905 0.8918 -0.15% -7.98% +0.8946 +0.8875 Sterling/Dollar GBP=D3 1.3378 1.3431 -0.38% +0.88% +1.3436 +1.3225 Dollar/Canadian CAD=D3 1.2804 1.2786 +0.17% -1.41% +1.2832 +1.2765 Aussie/Dollar AUD=D3 0.7422 0.7426 -0.05% +5.78% +0.7453 +0.7374 Euro/Swiss EURCHF= 1.0787 1.0808 -0.19% -0.60% +1.0814 +1.0782 Euro/Sterling EURGBP= 0.9053 0.9014 +0.43% +7.09% +0.9140 +0.9021 NZ NZD=D3 0.7039 0.7041 -0.01% +4.62% +0.7063 +0.7006 Dollar/DollarDollar/Norway NOK=D3 8.7430 8.7940 -0.68% -0.43% +8.9170 +8.6990 Euro/Norway EURNOK= 10.5948 10.6540 -0.56% +7.69% +10.7788 +10.5751 Dollar/Sweden SEK= 8.4025 8.4465 -0.68% -10.11% +8.5223 +8.3541 Euro/Sweden EURSEK= 10.1793 10.2492 -0.68% -2.77% +10.3000 +10.1610
