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FOREX-U.S. dollar drops to lowest in more than two years

Published 2020-11-30, 10:50 a/m
© Reuters.

* Dollar on track for largest monthly fall since July

* Euro hits 3-month vs dollar

* Bitcoin jumps to record high vs dollar

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds new comments, bitcoin, FX table, changes byline, dateline, previous LONDON)

By Gertrude Chavez-Dreyfuss

NEW YORK, Nov 30 (Reuters) - The dollar hit its lowest in two and a half years on Monday as broad risk sentiment improved overall, with investors looking to President-elect Joe Biden's economic team that is likely to push for more stimulus to counter the shock from the coronavirus pandemic.

The greenback was on course to post its worst monthly percentage loss since July.

Continued month-end dollar selling has also undermined the dollar on Monday, as global fund managers rebalanced their portfolios amid sharp gains in U.S. stocks, analysts said.

In contrast, bitcoin on Monday hit an all-time high of $19,864 and was last up 8.3% at $19,707 BTSP . for further stimulus and a series of positive COVID-19 vaccine announcements has seen global market sentiment rally this month, prompting the dollar to fall and riskier currencies to strengthen.

Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington, said sentiment on the dollar as a safe haven has dimmed on "expectations that the incoming Biden administration would come with fewer impediments to global growth."

He also expects the Federal Reserve to "maintain or redouble stimulus to keep a wavering recovery on track."

President-elect Joe Biden unveiled his picks for several top economic positions on Monday, including former Federal Reserve Chair Janet Yellen as his nominee for Treasury Secretary, setting the stage for a more diverse White House. the last day of the month, the dollar index was down 0.2% at 91.558 =USD

The euro rose to three-month highs versus the dollar of $1.20 EUR=EBS . The European Central Bank earlier signalled earlier this year it was carefully monitoring the euro-dollar exchange rate. are reluctant to chase it higher amid stretched technical indicators and data showing divergence favoring the U.S., and ahead of the ECB meeting that is likely to be dovish." said Marc Chandler, chief market strategist, at Bannockburn Global Forex.

The dollar was flat to slightly lower against the Chinese yuan in the offshore market, at 6.5727 CNH=EBS .

Monday's data showed China's manufacturing grew at its fastest pace in more than three years in November, while services sector growth hit a three-year high, data on Monday showed. offshore yuan was on course for its longest streak of monthly gains in six years, boosted by China's economic recovery from the coronavirus and steady capital inflows.

Meanwhile the New Zealand dollar was poised for its biggest monthly gain since late 2013, helped by a perception that the improving global economic outlook lessens the risk of negative rates. It was last up 0.2% at US$0.7048, having hit a new two-year high overnight NZD=D3 .

Brexit negotiations, meanwhile, remain the focus for the pound, which rose 0.4% versus the dollar to $1.3373 GBP=D3 , with the euro slightly down at 89.708 pence EURGBP=D3 .

Britain and the European Union are running out of time to agree on a Brexit trade deal, but if good progress is made this week the talks could be extended, Britain's environment secretary said. bid prices at 10:36AM (1536 GMT) Description

RIC

Last

U.S. Close Pct Change

YTD Pct

High Bid

Low Bid

Previous

Change

Session

Dollar index

=USD

$91.5920

91.7240

-0.13%

+0.00%

+91.7620

+91.5040 Euro/Dollar

EUR=EBS

$1.1992

$1.1965

+0.23%

+6.97%

+1.2004

+1.1959 Dollar/Yen

JPY=D3

104.1650

104.0500

+0.11%

-4.10%

+104.3450 +103.8500 Euro/Yen

EURJPY=

124.90

124.50

+0.32%

+2.42%

+125.1100 +124.3100 Dollar/Swiss

CHF=EBS

0.9048

0.9045

+0.03%

-6.50%

+0.9052

+0.9020 Sterling/Dollar GBP=D3

1.3353

1.3318

+0.27%

+0.69%

+1.3383

+1.3305 Dollar/Canadian CAD=D3

1.2937

1.2985

-0.35%

-0.39%

+1.2995

+1.2923 Aussie/Dollar

AUD=D3

0.7371

0.7384

-0.17%

+5.05%

+0.7407

+0.7367 Euro/Swiss

EURCHF=

1.0848

1.0818

+0.28%

-0.04%

+1.0851

+1.0804 Euro/Sterling

EURGBP=

0.8978

0.8980

-0.02%

+6.20%

+0.9000

+0.8958 NZ

NZD=D3

0.7039

0.7035

+0.06%

+4.61%

+0.7050

+0.7018 Dollar/Dollar

Dollar/Norway

NOK=D3

8.8295

8.8300

+0.01%

+0.67%

+8.8670

+8.7850 Euro/Norway

EURNOK=

10.5905

10.5560

+0.33%

+7.65%

+10.6170

+10.5289 Dollar/Sweden

SEK=

8.5011

8.4795

+0.46%

-9.05%

+8.5105

+8.4447 Euro/Sweden

EURSEK=

10.1941

10.1473

+0.46%

-2.63%

+10.1965

+10.1248

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