(Refiles to removing coding from Aussie dollar prices)
* Dollar dips, Georgia elections in focus
* Yuan official rate fixed at highest level in 30 months
* Aussie dollar gains
* Graphic: World FX rates in 2021 https://tmsnrt.rs/2RBWI5E
By Chuck Mikolajczak
NEW YORK, Jan 5 (Reuters) - The dollar fell against a basket of major currencies on Tuesday, on the heels of China's decision to lift its official yuan exchange rate by its highest margin since it abandoned a dollar peg in 2005, while U.S. Senate runoff elections in Georgia were also in focus.
China's central bank set the official yuan midpoint CNY=PBOC at 6.4760 per dollar before the market opened, up 1% from the previous fix, the biggest adjustment higher since 2005. the offshore market, the yuan strengthened as much as 6.4119 CNH=EBS for the first time since mid-June 2018. It started the week at 6.494.
The dollar briefly strengthened in a risk-off move on Monday as U.S. stocks dropped, but resumed its downward path after China's announcement, which also helped lift risk currencies. After initially opening lower on Tuesday, U.S. stocks rebounded to further dent the dollar's attractiveness, with the outlook of the Georgia runoffs drawing outsized attention.
A Democratic victory in both races could take control of the Senate away from Republicans, paving the way for further stimulus measures as well as higher corporate taxes and more regulation. is a big divergence of views on this Georgia election, people are kind of scratching their heads as far as what is going to be the outcome here," said Edward Moya, senior market analyst at OANDA in New York.
"There is going to be optimism for a dollar rebound, it is inevitable, how long is the question but you will see this over-positioning of dollar bearish bets is going to have to get undone."
The dollar index =USD fell 0.486% to 89.429. The greenback has fallen in the first two sessions of 2020 after a drop of nearly 7% in 2020 to reach levels not seen since April 2018.
The New York Stock Exchange said it no longer intends to de-list three Chinese telecom companies. The surprising reversal of an announcement made only last week added to confusion over a U.S. crackdown on companies said to be linked to China's military. Aussie dollar AUD=D3 , a barometer of risk appetite that also tends to follow the yuan, was up 1.4% to $0.7772, after climbing to $0.77775, its highest level since April 2018.
The euro EUR= was up 0.42% to $1.23 while the Japanese yen strengthened 0.45% versus the greenback at 102.64 per dollar.
Sterling GBP= was last trading at $1.363, up 0.45%, having been whipsawed by a surge in infections of a fast-spreading new coronavirus variant in the UK, with the government calling for a third national lockdown in an effort to curb the spread. slid 0.73% on Monday, the most since Dec. 10, after earlier rising to $1.3703, a level not seen since May 2018.
Bitcoin traded at $34,077.96 BTC=BTSP , up 6.41%, following a roller-coaster ride that took it to a record high of $34,800 on Sunday and a subsequent tumble to as low as $27,734 the following session.
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Currency bid prices at 2:48PM (1948 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Dollar index
=USD
89.4290
89.8780
-0.49%
+0.00%
+89.9170
+89.4210 Euro/Dollar
EUR=EBS
$1.2302
$1.2252
+0.41%
+0.68%
+$1.2305
+$1.2247 Dollar/Yen
JPY=D3
102.6450
103.1750
-0.52%
-0.63%
+103.1850 +102.6150 Euro/Yen
EURJPY=
126.28
126.33
-0.04%
-0.50%
+126.5500 +126.0600 Dollar/Swiss
0.8779
0.8812
-0.35%
-0.75%
+0.8816
+0.8776 Sterling/Dollar GBP=D3
$1.3630
$1.3562
+0.50%
-0.23%
+$1.3640
+$1.3558 Dollar/Canadian CAD=D3
1.2665
1.2775
-0.86%
-0.54%
+1.2789
+1.2656 Aussie/Dollar
AUD=D3
$0.7776
$0.7665
+1.47%
+1.10%
+$0.7777
+$0.7661 Euro/Swiss
EURCHF=
1.0800
1.0795
+0.05%
-0.06%
+1.0819
+1.0791 Euro/Sterling
EURGBP=
0.9026
0.9023
+0.03%
+1.00%
+0.9054
+0.9015 NZ
NZD=D3
$0.7254
$0.7175
+1.11%
+1.03%
+$0.7258
+$0.7170 Dollar/Dollar
Dollar/Norway
NOK=D3
8.4605
8.5480
-0.97%
-1.42%
+8.5580
+8.4650 Euro/Norway
EURNOK=
10.4094
10.4735
-0.61%
-0.55%
+10.4990
+10.4120 Dollar/Sweden
8.1698
8.2387
-0.57%
-0.32%
+8.2556
+8.1710 Euro/Sweden
EURSEK=
10.0508
10.1084
-0.57%
-0.25%
+10.1130
+10.0392
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ China sets yuan mid-point at strongest in 30 months
https://tmsnrt.rs/3b41hSW
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