* Euro, NZ dollar hit highest in more than 2 years
* Sterling rises to three-month high
* U.S bipartisan stimulus proposal sinks greenback
* Pelosi, Mnuchin meet on COVID relief
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds analyst comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 1 (Reuters) - The dollar stumbled on Tuesday to its lowest level in more than 2-1/2 years, as investors' appetite for risk increased on prospects of further fiscal stimulus from the United States as well as expectations of a solid global recovery.
News of a proposed COVID bill sank the dollar further, as did the resumption of talks between U.S. Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi on Tuesday about a stimulus package. proposed relief bill of $908 billion would fund measures through March 31, including $228 billion in additional paycheck protection funds for hotels, restaurants and other small businesses.
"Traders are looking for any reason to bid risk up and that comes at the cost of the dollar," said John Doyle, vice president of dealing and trading at Tempus, Inc. in Washington.
"When you get a report that a bipartisan stimulus deal can get done after hopes have been dashed, it's just another reason to bid risk up and sell the dollar," he added.
Pelosi said on Tuesday Mnuchin would review both bipartisan Senate proposal as well her and Senator Charles Schumer's COVID relief plan. that thrive in times of risk appetite such as the euro, sterling, as well as the Australian, and New Zealand dollars all rose against the greenback.
The euro and the New Zealand dollar both hit 2-1/2-year highs.
Bitcoin was also on a tear, hitting a record high just under $20,000 BTC=BTSP . The virtual currency though was last down 3.8% at $18,961.
In afternoon trading, the dollar index fell 0.7% to 91.318 =USD , hitting 91.263, the lowest since late April 2018.
The euro hit a 2-1/2-year high vs dollar at $1.20.55 and last traded 1% higher at $1.2049.
"The technical argument in favor of additional euro gains in the short- to medium-term is fairly compelling," said Scotiabank in a research note.
"November price action overall was bullish for the euro, the break out from the (second half) consolidation suggests upside potential towards $1.25-$1.26."
Sterling climbed to a three-month peak versus the dollar after Times Radio said Brexit trade deal talks have entered the "tunnel" stage of negotiations. The "tunnel" is a term for an intense final stage of secretive, make-or-break negotiations. pound was last up 0.7% at $1.3410 GBP=D3 .
Nagging worries about rising coronavirus cases have not provided the dollar with much safe-haven support. Speculation is also growing that the Federal Reserve will act to support the economy through a tough winter before vaccinations become available. That should further weigh on the dollar.
The Fed meets to set policy on Dec. 15-16.
Fed Chairman Jerome Powell and Treasury's Mnuchin on Tuesday also urged Congress to provide more help for small businesses amid a surging coronavirus pandemic and concern that relief from a vaccine may not arrive in time to keep them from failing. New Zealand dollar hit its highest level since June 2018 and was last up 0.7% at US$0.7055 NZD=D3 , while the Canadian dollar CAD=D3 rose versus the greenback, which dropped 0.4% to C$1.2954. Data showed Canada's economy grew by 40.5% on an annualized basis in the third quarter, rebounding from a historic plunge in the second. CAD/
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Currency bid prices at 3:21PM (2021 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Dollar index
=USD
$91.2920
91.9490
-0.70%
+0.00%
+91.9640
+91.2630 Euro/Dollar
$1.2050
$1.1923
+1.07%
+7.48%
+1.2055
+1.1927 Dollar/Yen
JPY=D3
104.3700
104.3350
+0.05%
-3.89%
+104.5750 +104.2050 Euro/Yen
EURJPY=
125.76
124.39
+1.10%
+3.13%
+125.8200 +124.4100 Dollar/Swiss
0.9007
0.9092
-0.92%
-6.91%
+0.9087
+0.8998 Sterling/Dollar GBP=D3
1.3412
1.3325
+0.66%
+1.13%
+1.3440
+1.3316 Dollar/Canadian CAD=D3
1.2945
1.3008
-0.48%
-0.35%
+1.3008
+1.2931 Aussie/Dollar
AUD=D3
0.7361
0.7345
+0.22%
+4.91%
+0.7373
+0.7342 Euro/Swiss
EURCHF=
1.0853
1.0836
+0.16%
+0.01%
+1.0859
+1.0833 Euro/Sterling
EURGBP=
0.8983
0.8952
+0.35%
+6.26%
+0.9007
+0.8930 NZ
NZD=D3
0.7059
0.7010
+0.70%
+4.90%
+0.7067
+0.7011 Dollar/Dollar
Dollar/Norway
NOK=D3
8.8200
8.9025
-0.85%
+0.62%
+8.9005
+8.8095 Euro/Norway
EURNOK=
10.6309
10.5995
+0.30%
+8.06%
+10.6465
+10.5648 Dollar/Sweden
8.4899
8.5725
-0.01%
-9.17%
+8.5793
+8.4842 Euro/Sweden
EURSEK=
10.2318
10.2329
-0.01%
-2.27%
+10.2435
+10.1958