* New Zealand dollar hits highest in more than 2 years
* Commodity-linked currencies gains vs U.S. dollar
* Canadian dollar shy of a two-year high
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (New throughout, updates prices, market activity, comments, FX table; new byline, changes dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 1 (Reuters) - The dollar fell on Tuesday to its lowest in 2-1/2 years, as investor appetite for risk increased on expectations of a solid global recovery and further monetary and fiscal stimulus from the United States.
The greenback extended losses after news of proposed COVID relief as well as reports that U.S. Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi were due to speak at 1 p.m. EST about a stimulus package. proposed relief bill was $908 billion and would fund measures through March 31, including $228 billion in additional paycheck protection program funds for hotels, restaurants and other small businesses.
"The theme of the financial markets following the U.S. election has been one of risk-on across all asset classes," said James Rider, research director at currency advisory firm FXvolResearch in Vancouver, Canada, a view consistent with a weak dollar trend.
"The risk-on sentiment has been directly correlated to the growing confidence that the election outcome is settled and that there will be a peaceful transition of power," he added.
Currencies that trade higher in times of risk appetite such as the euro, sterling, as well as the Australian, New Zealand, and Canadian dollars all rose against the greenback.
The euro was near a three-month high, while the New Zealand dollar rose to its highest in more than two years.
Bitcoin was also on a tear, hitting a record high just under $20,000 BTC=BTSP . The virtual currency was last down 1.9% t $19,320.
In mid-morning trading, the dollar index fell 0.6% to 91.428 =USD , hitting a more than two-year low of 91.405.
The dollar extended losses as well after mixed U.S. economic data showing a rise in construction spending, but a decline in a manufacturing index. euro hit a 2-1/2-year high vs dollar above $1.20 and was last 0.8% at $1.2029.
Nagging worries about rising coronavirus cases have not provided the dollar with much safe-haven support. Speculation is growing that the Fed will act to support the economy through a tough winter before vaccinations become available.
In prepared remarks released late Wednesday on the eve of his Senate testimony, Fed Chairman Jerome Powell said a slowing recovery and a surging pandemic mean the United States is entering a "challenging" few months, with potential deployment of a vaccine still facing hurdles of production and mass distribution before its impact on the economy becomes clear. Fed meets to set policy on Dec. 15 and 16.
In separate testimony to be delivered at the same hearing, Treasury Secretary Steven Mnuchin said the economy had made "remarkable progress" recovering ground lost due to the pandemic, and that any further government help should be targeted to "workers and small businesses that continue to struggle," as opposed to spread broadly in the economy.
Powell and Mnuchin testified on the CARES Act, under which Congress made $2 trillion available to the Treasury as coronavirus aid, a large portion of which was aimed to support the FOMC's lending programs.
The New Zealand dollar hit its highest since June 2018 and was last up 0.7% at US$0.7054 NZD=D3 .
========================================================
Currency bid prices at 10:58AM (1558 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Dollar index
=USD
$91.4640
91.9490
-0.52%
+0.00%
+91.9640
+91.4050 Euro/Dollar
$1.2030
$1.1923
+0.88%
+7.29%
+1.2042
+1.1927 Dollar/Yen
JPY=D3
104.4800
104.3350
+0.14%
-3.80%
+104.5750 +104.2050 Euro/Yen
EURJPY=
125.67
124.39
+1.03%
+3.05%
+125.7900 +124.4100 Dollar/Swiss
0.9011
0.9092
-0.87%
-6.87%
+0.9087
+0.9006 Sterling/Dollar GBP=D3
1.3362
1.3325
+0.29%
+0.75%
+1.3406
+1.3316 Dollar/Canadian CAD=D3
1.2965
1.3008
-0.32%
-0.19%
+1.3008
+1.2944 Aussie/Dollar
AUD=D3
0.7352
0.7345
+0.10%
+4.77%
+0.7373
+0.7342 Euro/Swiss
EURCHF=
1.0838
1.0836
+0.02%
-0.13%
+1.0859
+1.0833 Euro/Sterling
EURGBP=
0.9000
0.8952
+0.54%
+6.46%
+0.9007
+0.8930 NZ
NZD=D3
0.7053
0.7010
+0.61%
+4.82%
+0.7062
+0.7011 Dollar/Dollar
Dollar/Norway
NOK=D3
8.8435
8.9025
-0.67%
+0.80%
+8.9005
+8.8200 Euro/Norway
EURNOK=
10.6400
10.5995
+0.38%
+8.15%
+10.6465
+10.5648 Dollar/Sweden
8.5111
8.5725
+0.05%
-8.95%
+8.5793
+8.5038 Euro/Sweden
EURSEK=
10.2385
10.2329
+0.05%
-2.20%
+10.2430
+10.1958