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FOREX-U.S. dollar slides to 2-1/2-year low on vaccine optimism

Published 04/12/2020, 08:00 am
Updated 04/12/2020, 08:06 am
© Reuters.
EUR/USD
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USD/JPY
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USD/CHF
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USD/SEK
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* Euro hits fresh 2-1/2-year high vs dollar

* Dollar falls to lowest since January 2015 vs Swiss franc

* U.S. jobless claims fall in latest week

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Updates currency values throughout, add analyst comment)

By Gertrude Chavez-Dreyfuss and Suzanne Barlyn

NEW YORK, Dec 3 (Reuters) - The dollar plunged on Thursday to its weakest level in more than 2-1/2 years, while the euro gained, as signs of progress toward U.S. fiscal stimulus and optimism about COVID-19 vaccines kept investors upbeat.

In afternoon trading, the dollar index, a measure of its value against six major currencies, fell 0.3% to 90.72. Its session low of 90.504 =USD was the lowest since April 2018.

With its safe-haven allure evaporating, the greenback also tumbled to a nearly six-year low against the Swiss franc.

In a possible sign of progress, Democratic House of Representatives Speaker Nancy Pelosi and Republican Senate Majority Leader Mitch McConnell consulted on coronavirus aid. Republicans have been pushing for a slim $500 billion measure that Democrats had rejected as too small to address the raging pandemic. have sold safe-haven dollars as risk appetite has been growing on optimism about COVID-19 vaccines, a day after the UK approved Pfizer Inc (NYSE:PFE)'s vaccine. dollar bears are not going away any time soon," said Edward Moya, senior market analyst at OANDA in New York. "Every day we get closer to the delivering of coronavirus vaccines and there's just a whole lot of optimism that you're going to see a much quicker recovery in 2021."

The dollar was pressured by U.S. data showing initial claims for state unemployment benefits fell 75,000 to a seasonally adjusted 712,000 for the week ended Nov. 28. Economists polled by Reuters had forecast 775,000 applications.

Although tensions between the United States and China pose a downside risk, global markets expect improved trade relations under President-elect Joe Biden's administration. euro soared to its highest since April 2018 at $1.2174 and was last at $1.2142, up 0.2% EUR=EBS .

The pound was up 0.7% against the dollar at $1.3452 GBP=D3 , as Brexit negotiations continued. It pared gains after the BBC's political editor Laura Kuenssberg said talks hit a snag late Thursday, with the European bloc introducing new elements. European Central Bank said it will provide further stimulus to help the euro zone when it meets on Dec. 10. Market participants will pay attention to any comments about the euro's strength. Australian dollar - seen as a liquid proxy for risk - was up 0.4% on the day at US$0.7445 AUD=D3 , after earlier hitting its highest level since August 2018.

The New Zealand dollar also touched fresh 2-1/2-year highs above US$0.71 and last traded up 0.23% on the day at US$0.7080 NZD=D3 .

The dollar fell to the lowest in more than a week versus the yen and last traded down 0.4% at 103.98 yen JPY=EBS . The greenback also dropped 0.36% against the Swiss franc to 0.8917 franc CHF=EBS , after sinking to its lowest level since January 2015.

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Currency bid prices at 2:41PM (1941 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

$90.7080

91.0220

-0.34%

+0.00%

+91.0930

+90.5040 Euro/Dollar

EUR=EBS

$1.2142

$1.2117

+0.21%

+8.30%

+1.2175

+1.2101 Dollar/Yen

JPY=D3

103.9400

104.5650

-0.70%

-4.40%

+104.5300 +103.6850 Euro/Yen

EURJPY=

126.19

126.47

-0.22%

+3.48%

+126.6500 +126.0400 Dollar/Swiss

CHF=EBS

0.8915

0.8949

-0.37%

-7.86%

+0.8953

+0.8892 Sterling/Dollar GBP=D3

1.3452

1.3373

+0.60%

+1.43%

+1.3499

+1.3353 Dollar/Canadian CAD=D3

1.2859

1.2917

-0.44%

-1.01%

+1.2940

+1.2853 Aussie/Dollar

AUD=D3

0.7446

0.7415

+0.42%

+6.13%

+0.7450

+0.7398 Euro/Swiss

EURCHF=

1.0825

1.0838

-0.12%

-0.25%

+1.0842

+1.0817 Euro/Sterling

EURGBP=

0.9025

0.9066

-0.45%

+6.75%

+0.9070

+0.8999 NZ

NZD=D3

0.7079

0.7065

+0.23%

+5.23%

+0.7104

+0.7051 Dollar/Dollar

Dollar/Norway

NOK=D3

8.7535

8.8130

-0.54%

-0.08%

+8.8455

+8.7415 Euro/Norway

EURNOK=

10.6300

10.6600

-0.28%

+8.05%

+10.7140

+10.6314 Dollar/Sweden

SEK=

8.4444

8.4632

+0.00%

-9.66%

+8.4981

+8.4228 Euro/Sweden

EURSEK=

10.2541

10.2543

+0.00%

-2.06%

+10.3040

+10.2470

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https://tmsnrt.rs/2JmhjME

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