* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds quotes, McConnell comments on stimulus, updates prices)
By Karen Brettell
NEW YORK, Dec 29 (Reuters) - The dollar pared losses on Tuesday after earlier reaching a more than two-year low against the euro, but remained lower on the day as investors weighed whether an increase in U.S. fiscal stimulus is likely.
U.S. Senate Majority Leader Mitch McConnell on Tuesday blocked immediate consideration of a measure to increase COVID-19 relief payments to $2,000. He suggested the Senate would at least examine the issue. just really delays the inevitable,” said Edward Moya, senior market analyst at OANDA in New York.
“With the Biden administration coming into place you're going to have expectations that we're going to see another attempt at more stimulus, and that's why I think the dollar trimmed its losses but very limitedly,” Moya said.
The dollar fell 0.28% against a basket of currencies =USD to 89.99. It is holding just above a two-and-a-half year low of 89.72 reached on Dec. 17.
Trading is thin with many investors out between the Christmas and New Year holidays.
The euro EUR=EBS gained 0.28% to $1.2251 after getting as high as $1.2274, the strongest since April 2018.
The Aussie AUD=D3 gained 0.39% to $0.7610. It reached $0.7639 on Dec. 17, the highest since June 2018.
The greenback slipped 0.29% against the Canadian dollar CAD=D3 to 1.2810 Canadian dollars. The loonie reached 1.2684 on Dec. 17, the strongest since April 2018.
Investors are betting the greenback will continue to decline - it is down 6.77% this year - on expectations the Federal Reserve will hold interest rates near zero and the U.S. economy will struggle to recover from coronavirus-related shutdowns.
Data released by the Commodity Futures Trading Commission on Monday showed traders increased bets against the dollar in the week ended Dec. 21 to $26.6 billion. That was the highest in three months, according to Reuters calculations. key factor on how much more stimulus is forthcoming will also be two Georgia Senate runoffs next month that will determine which party controls the upper U.S. chamber.
“I think consensus is that Republicans will win one of those seats,” said Moya. However, “the Democrats might have a one-in-three chance of pulling this off and that is not reflected in prices right now.”
The euro was also buoyed on Tuesday by a trade deal reached last week for Britain to leave the European Union. Though the agreement is not comprehensive, it avoided a damaging no-deal outcome. rose 0.33% to $1.3500 GBP=D4 following a two-day dip. It was as high as $1.3625 this month, a level unseen since May 2018, but investors have taken some profits since the Brexit trade deal was struck.
Bitcoin < BTC=BTSP> fell 0.61% to $26,871 after hitting a record $28,378 on Sunday. The currency has surged 275% this year as it gains more acceptance from mainstream investors.
XRP XRP=BTSP the third-biggest digital currency, slumped 13% after Coinbase, a major U.S. virtual coin exchange, said it would suspend XRP trading. move came after U.S. regulators charged Ripple, a blockchain firm associated with XRP, with conducting a $1.3 billion unregistered securities offering. Ripple has denied the charges. bid prices at 3:19PM (2019 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
=USD
89.9890
90.2430
-0.28%
+0.00%
+90.2530
+89.8510 Euro/Dollar
EUR=EBS
$1.2251
$1.2216
+0.28%
+9.27%
+$1.2275
+$1.2207 Dollar/Yen
JPY=D3
103.5100
103.8250
-0.33%
-4.72%
+103.8000 +103.4850 Euro/Yen
EURJPY=
126.85
126.77
+0.06%
+4.02%
+127.2300 +126.7100 Dollar/Swiss
0.8845
0.8886
-0.46%
-8.59%
+0.8887
+0.8831 Sterling/Dollar GBP=D3
$1.3500
$1.3460
+0.33%
+1.82%
+$1.3521
+$1.3443 Dollar/Canadian CAD=D3
1.2810
1.2849
-0.29%
-1.38%
+1.2849
+1.2780 Aussie/Dollar
AUD=D3
$0.7610
$0.7583
+0.39%
+8.49%
+$0.7625
+$0.7577 Euro/Swiss
EURCHF=
1.0836
1.0852
-0.15%
-0.15%
+1.0875
+1.0823 Euro/Sterling
EURGBP=
0.9074
0.9078
-0.04%
+7.33%
+0.9094
+0.9057 NZ
NZD=D3
$0.7148
$0.7103
+0.65%
+6.24%
+$0.7164
+$0.7099 Dollar/Dollar
Dollar/Norway
NOK=D3
8.6110
8.6490
-0.40%
-1.80%
+8.6405
+8.5860 Euro/Norway
EURNOK=
10.5510
10.5470
+0.04%
+7.25%
+10.5815
+10.4950 Dollar/Sweden
8.1980
8.2569
-0.49%
-12.30%
+8.2842
+8.1795 Euro/Sweden
EURSEK=
10.0498
10.0990
-0.49%
-4.01%
+10.1328
+10.0403