FOREX-Dollar grinds lower as traders question timing of U.S. stimulus

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Talks on U.S. stimulus not progressing
* U.S. dollar loses some ground
* Aussie gains on positive jobs data

By Stanley White
TOKYO, Aug 13 (Reuters) - The dollar fell against most of
its peers on Thursday amid fading hopes for a compromise between
Republicans and Democrats over additional stimulus for the U.S.
economy.
The Australian dollar rose after better-than-expected jobs
data eased concerns about a persistent coronavirus outbreak in
the country's second-largest city.
The greenback was hampered by a decline in Treasury yields,
but analysts say this is likely only a temporary setback because
U.S. lawmakers will eventually agree to more stimulus to help
the economy recover from the coronavirus.
"The dollar needs positive news on stimulus to rise further,
but I'm sure we'll get there, because these politicians can't go
back to their constituencies empty handed," said Masafumi
Yamamoto, chief currency strategist at Mizuho Securities in
Tokyo.
"Once this happens, gains in dollar/yen could be a catalyst
for dollar gains against other currencies."
Against the euro EUR=D3 , the dollar fell to $1.1813,
adding to a 0.4% decline on Wednesday.
The British pound GBP=D3 rose 0.25% to $1.3067.
The dollar fell 0.2% against the safe harbour Swiss franc
CHF=D3 to 0.9105.
The dollar pulled back from a three-week high to trade at
106.65 yen JPY=D3 .
The onshore yuan CNY=CFXS briefly rose to a five-month
high before steadying at 6.9380 per dollar.
President Donald Trump accused congressional Democrats on
Wednesday of not wanting to negotiate over a U.S. coronavirus
aid package as top Republican and Democratic negotiators traded
blame for a five-day lapse in talks over relief legislation.
The pandemic has taken a particularly heavy toll on the
United States, where it has killed more people than any other
country. Millions of U.S. workers have lost jobs, and
supplemental federal unemployment benefits expired last month.
Market sentiment has swung between optimism and pessimism,
but analysts argue that more stimulus is the most likely outcome
because without it the U.S. economic recovery could stall.
The U.S. dollar index against a basket of major currencies
USD= fell 0.2% on Thursday in Asia but was still well above
the two-year low it reached last week.
Elsewhere in currencies, the Australian dollar AUD=D3 rose
0.2% to $0.7176, holding onto gains after data showed the
economy created three times as many jobs as expected and the
jobless rate fell from a 22-year high in July. The positive jobs data suggests the economy remains
resilient in the face of an ongoing outbreak of coronavirus
cases in Melbourne.
Across the Tasman Sea, the New Zealand dollar NZD=D3
bought $0.6581, stabilising after the country's central bank on
Wednesday expanded quantitative easing and flagged the prospect
of negative interest rates.