* 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
(Adds new comment, FX table, U.S. data, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 3 (Reuters) - The dollar plunged to its weakest level in more than 2-1/2 years on
Thursday, while the euro held above $1.21, as signs of progress towards U.S. fiscal stimulus and optimism
about COVID-19 vaccines kept investors upbeat.
The greenback tumbled to a nearly six-year low against the Swiss franc.
Lawmakers in Washington have failed to reach an agreement on economic stimulus to help relieve the
impact of COVID-19 in the United States, but there were early signs that a $908 billion bipartisan
proposal could be gaining traction. Risk appetite was also boosted by optimism about recent developments towards the roll-out of COVID-19
vaccines. The UK approved Pfizer Inc's vaccine on Wednesday. "The market is reading all news as dollar-negative," said Marc Chandler, chief market strategist, at
Bannockburn Global Forex, despite near-term challenges such as rising COVID cases, and weakening global
economic data.
"Investors are looking past all this and they look a bit further and they see the vaccines and they
see a world that can start normalizing," he added.
In mid-morning trading, the dollar index, a measure of its value against six major currencies, fell
0.5% to 90.574, dropping as low as 90.554 =USD , the lowest since April 2018.
Data on initial claims for state unemployment benefits showed the number falling 75,000 to a
seasonally adjusted 712,000 for the week ended Nov. 28. Economists polled by Reuters had forecast 775,000
applications in the latest week.
The report also weighed on the dollar.
Although tensions between the United States and China pose a downside risk, the latest developments
have had limited impact on global markets because of the expectation of more normalised trade relations
under the Joe Biden administration. The euro soared to its highest since April 2018 at $1.2172 and was last at $1.2171, up 0.5% EUR=EBS .
The European Central Bank said it will provide further stimulus to help the euro zone when it meets on
Dec. 10. Market participants will also be paying close attention to any comments about the euro's
strength. Joel Kruger, market strategist at LMAX Group said he would expect the ECB to express discomfort with
the additional currency appreciation.
The Australian dollar - seen as a liquid proxy for risk - was up 0.4% on the day at US$0.7441.
The New Zealand dollar also touched fresh 2-1/2-year highs above US$0.71 and last traded up 0.5% on
the day at US$0.7096 NZD=D3 .
The dollar fell to a more than one-week low versus the yen and last traded down 0.7% at 103.70 yen
JPY=EBS . The greenback also dropped 0.5% against the Swiss franc to 0.8893 franc CHF=EBS , after
sinking to its lowest level since January 2015..
The pound was up 0.9% against the dollar at $1.3485 GBP=D3 , helped by the dollar weakness, as Brexit
negotiations continue. EU diplomats said they hoped a Brexit trade deal with Britain could be agreed by
Friday or at the weekend. Currency bid prices at 10:48AM (1548 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $90.5280 91.0220 -0.53% +0.00% +91.0930 +90.5040
Euro/Dollar EUR=EBS $1.2170 $1.2117 +0.44% +8.55% +1.2175 +1.2101
Dollar/Yen JPY=D3 103.7450 104.5650 -0.80% -4.50% +104.5300 +103.6850
Euro/Yen EURJPY= 126.24 126.47 -0.18% +3.52% +126.6500 +126.1500
Dollar/Swiss CHF=EBS 0.8895 0.8949 -0.60% -8.07% +0.8953 +0.8892
Sterling/Dollar GBP=D3 1.3494 1.3373 +0.91% +1.75% +1.3494 +1.3353
Dollar/Canadian CAD=D3 1.2878 1.2917 -0.30% -0.87% +1.2940 +1.2873
Aussie/Dollar AUD=D3 0.7440 0.7415 +0.34% +6.04% +0.7447 +0.7398
Euro/Swiss EURCHF= 1.0824 1.0838 -0.13% -0.26% +1.0842 +1.0817
Euro/Sterling EURGBP= 0.9018 0.9066 -0.53% +6.67% +0.9070 +0.9015
NZ NZD=D3 0.7094 0.7065 +0.45% +5.47% +0.7104 +0.7051
Dollar/Dollar
Dollar/Norway NOK=D3 8.7480 8.8130 -0.81% -0.35% +8.8455 +8.7415
Euro/Norway EURNOK= 10.6465 10.6600 -0.13% +8.22% +10.7140 +10.6352
Dollar/Sweden SEK= 8.4295 8.4632 +0.05% -9.82% +8.4981 +8.4228
Euro/Sweden EURSEK= 10.2593 10.2543 +0.05% -2.00% +10.3040 +10.2470
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Euro rises https://tmsnrt.rs/2JmhjME
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