(Correct index in eleventh paragraph to remove reference to
Reuters index)
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Karen Brettell
NEW YORK, Nov 23 (Reuters) - The dollar bounced off an
almost three-month low against a basket of currencies hit on
Monday following optimism over another COVID-19 vaccine as the
index approached a technical support level that if broken, could
signal further weakness for the greenback.
The dollar had weakened as risk appetite got a boost after
AstraZeneca AZN.L said that its vaccine could be about 90%
effective and it would prepare to submit data to authorities
around the world that have a framework for conditional or early
approval. "At least for now the news from AstroZeneca is helping to
overshadow concerns about the economic fallout from mounting
business restrictions," said Joe Manimbo, senior market analyst
at Western Union Business Solutions in Washington.
However, "the lingering downside threat to growth may help
slow the dollar's decline", Manimbo said.
Investors are balancing the prospect of a closer rollout of
COVID-19 vaccines against worsening U.S. economic data as a rise
in COVID-19 cases again leads to business shutdowns.
The dollar index =USD was last up 0.05% at 92.366, after
earlier dropping to 92.013, the lowest since Sept. 1. It is
hovering just above technical support around 92, a conclusive
break below which could usher in new weakness, analysts said.
Matthew Maley, chief market strategist at Miller Tabak noted
that he would wait for confirmation that any break below 92 is
significant before assuming further weakness, but added that if
the index does fall below that level "in any meaningful way,
it's going to be very bearish for the greenback on a technical
basis".
Analysts at Brown Brothers Harriman said that if the index
breaks its September low, there is little support until its low
from February 2018.
The Reuters dollar index showed the greenback falling to a
more than two-year low of 91.737 on Sept. 1. It fell to 88.251
in February 2018, which was the lowest since December 2014.
The euro EUR=EBS was last down 0.01% at $1.1855.
Based on the dollar index, the next target for the euro is
likely its September high near $1.2010, followed by the February
2018 high of $1.2555, Brown Brothers Harriman said.
The New Zealand dollar surged to a two-year high after
strong retail sales data, before falling back to be little
changed on the day at 0.6930 per dollar. NZD=D3 The pound was boosted by hopes for a Brexit deal GBP=D3 .
The EU's chief Brexit negotiator said that fundamental
divergences remain but both sides were pushing hard for a deal.
Sterling GBP=D3 was last 0.44% up at $1.3349.
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Currency bid prices at 10:01AM (1501 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $92.3660 92.3260 +0.05% +0.00% +92.3890 +92.0130
Euro/Dollar EUR=EBS $1.1855 $1.1856 -0.01% +5.74% +1.1906 +1.1850
Dollar/Yen JPY=D3 104.0800 103.8500 +0.23% -4.17% +104.0950 +103.7000
Euro/Yen EURJPY= 123.38 123.11 +0.22% +1.17% +123.5400 +123.0700
Dollar/Swiss CHF=EBS 0.9113 0.9110 +0.05% -5.80% +0.9115 +0.9077
Sterling/Dollar GBP=D3 1.3349 1.3289 +0.44% +0.63% +1.3396 +1.3289
Dollar/Canadian CAD=D3 1.3079 1.3093 -0.09% +0.69% +1.3091 +1.3046
Aussie/Dollar AUD=D3 0.7298 0.7303 -0.06% +4.01% +0.7337 +0.7297
Euro/Swiss EURCHF= 1.0805 1.0801 +0.04% -0.43% +1.0817 +1.0799
Euro/Sterling EURGBP= 0.8878 0.8929 -0.57% +5.02% +0.8929 +0.8875
NZ NZD=D3 0.6930 0.6928 +0.04% +3.00% +0.6967 +0.6915
Dollar/Dollar
Dollar/Norway NOK=D3 9.0280 9.0100 +0.09% +2.80% +9.0310 +8.9655
Euro/Norway EURNOK= 10.7050 10.6740 +0.29% +8.81% +10.7150 +10.6410
Dollar/Sweden SEK= 8.6302 8.6186 +0.14% -7.67% +8.6320 +8.5791
Euro/Sweden EURSEK= 10.2299 10.2152 +0.14% -2.29% +10.2370 +10.2020