FOREX-Bitcoin breaks $20,000 for first time, Switzerland named currency manipulator

(Adds Bitcoin price, Treasury report on Swiss franc, U.S. data, updates comments and prices)
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Suzanne Barlyn
Dec 16 (Reuters) - Bitcoin BTC=BTSP smashed through $20,000 for the first time on Wednesday while
the Swiss franc gained after the U.S. Treasury labelled Switzerland a currency manipulator.
Bitcoin last jumped 6.9% to move as high as $20,651. The cryptocurrency has gained more than 170% this year, buoyed by demand from larger investors
attracted to its potential for quick gains, purported inflation-resistant qualities, and expectations it
will become a mainstream payment method.
"The latest run to $20,000 hasn't been accompanied by nearly the amount of hype as there was back in
2017," said Paul Hickey, co-founder of Bespoke Investment Group. Bitcoin then garnered more interest from
retail investors, but some may now be leery after getting burned, Hickey said.
The Treasury, also on Wednesday, said that through June 2020 both Switzerland and Vietnam had
intervened in currency markets to prevent effective balance of payments adjustments. It is not surprising that the Trump administration might make a case about currency manipulation,
given recent "runaway appreciation" of the Swissy, which is near six-year highs, said Joe Manimbo, senior
market analyst at Western Union Business Solutions.
The Swiss Franc was last at 0.8844, with the dollar down 0.12% against the currency on the day.
The Swiss government, on Wednesday, said it is open for bilateral talks with the U.S. Treasury about
the currency manipulation issue. Strong euro zone survey figures and hopes of progress on Brexit negotiations pushed the euro above
$1.22 against the U.S. dollar on Wednesday for the first time since April 2018, but later notched
downward.
Against the U.S. dollar, the euro EUR=EBS rose 0.40% to $1.2199 after earlier reaching as high as
$1.2212.
The dollar index, which measures the U.S. currency against a basket of currencies, was last at 90.2370
=USD , a level not seen since April 2018.
The index slightly pared losses after data showed that U.S. retail sales fell for a second straight
month in November, but then fell again. Investors are also keeping an eye on the outcome of a two-day Federal Reserve policy meeting on
Wednesday. Policymakers are expected to keep the U.S. overnight interest rate near zero and signal it will
stay there for years to come, a decision that analysts say will further boost risk sentiment.
The euro has risen nearly 13% since the European Union announced a recovery fund in May. Stronger
economic activity data in recent months have also boosted bets that Europe is likely to outperform the
United States in the coming months.
Those expectations got a further boost with manufacturing survey data from Germany and France
indicating that Europe's biggest economies may be recovering quickly. and Ursula von der Leyen, the president of the European Commission, said she could not say whether the EU
and Britain would reach a trade agreement, but progress had been made and the next few days would be
critical. ========================================================
Currency bid prices at 9:49AM (1449 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.2370 90.4790 -0.26% +0.00% +90.5440 +90.1260
Euro/Dollar EUR=EBS $1.2199 $1.2151 +0.40% +8.82% +$1.2212 +$1.2145
Dollar/Yen JPY=D3 103.5050 103.6550 -0.19% -4.75% +103.7150 +103.2650
Euro/Yen EURJPY= 126.26 125.95 +0.25% +3.53% +126.3400 +125.7200
Dollar/Swiss CHF=EBS 0.8844 0.8855 -0.12% -8.60% +0.8866 +0.8826
Sterling/Dollar GBP=D3 $1.3508 $1.3470 +0.29% +1.85% +$1.3553 +$1.3436
Dollar/Canadian CAD=D3 1.2757 1.2698 +0.48% -1.79% +1.2762 +1.2697
Aussie/Dollar AUD=D3 $0.7561 $0.7556 +0.09% +7.78% +$0.7578 +$0.7546
Euro/Swiss EURCHF= 1.0787 1.0759 +0.26% -0.60% +1.0806 +1.0762
Euro/Sterling EURGBP= 0.9029 0.9022 +0.08% +6.80% +0.9054 +0.8994
NZ NZD=D3 $0.7088 $0.7091 +0.00% +5.38% +$0.7120 +$0.7085
Dollar/Dollar
Dollar/Norway NOK=D3 8.6875 8.7145 -0.26% -0.91% +8.7325 +8.6540
Euro/Norway EURNOK= 10.5992 10.5884 +0.10% +7.74% +10.6146 +10.5627
Dollar/Sweden SEK= 8.3441 8.3682 -0.06% -10.73% +8.3905 +8.3289
Euro/Sweden EURSEK= 10.1782 10.1848 -0.06% -2.78% +10.2010 +10.1680