FOREX-Dollar falls as FX investors look past latest U.S. stimulus delay

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Stimulus doubts give dollar brief reprieve
* Many analysts calling for long-term dollar decline
* Year-end mood likely to keep markets subdued

By Stanley White
TOKYO, Dec 30 (Reuters) - The dollar fell to its lowest in
more than two years against the euro on Wednesday as currency
traders looked past a new delay in U.S. stimulus cheques and
maintained bets additional financial aid was still likely.
The greenback was also pinned near two-year lows against the
Australian and New Zealand dollars.
U.S. Senate Majority Leader Mitch McConnell on Tuesday
blocked immediate consideration of a measure to increase
COVID-19 relief payments to $2,000, adding another twist to
fractious negotiations over fiscal stimulus. The dollar has fallen steadily since President Donald Trump
signed a coronavirus aid and spending bill on Sunday, because
more stimulus for the world's largest economy reduces demand for
the perceived safety of holding the greenback.
While the size of relief payments is still uncertain, many
analysts say the dollar is likely to resume falling next year
because President-elect Joe Biden is expected to push for even
more economic support measures.
"Our weak dollar call remains intact as we move into 2021,"
analysts at BBH wrote in a research memo.
"What happens to the greenback... largely depends on how
well the United States controls the virus in 2021 as well as the
outlook for further fiscal stimulus."
The dollar fell to $1.2279 per euro EUR=EBS on Wednesday
in Asia, its weakest since April 2018
The British pound GBP=D3 was steady at $1.3511.
Against the Swiss franc CHF=EBS , the dollar bought 0.8839,
close to the weakest in more than five years.
The dollar was little changed at 103.53 yen JPY=D3 .
Market moves are likely to be subdued due to low liquidity
with many investors away for year-end holidays.
A light data calendar in Asia is also likely to leave
traders with little incentive to take out big positions.
The dollar index =USD against a basket of six major
currencies stood at 89.974, not far from the lowest in more than
two years.
Last-minute infighting has cast doubt on some of the details
of the U.S. aid package, but many analysts say the U.S.
government will keep rolling out fiscal stimulus in some form
because a second wave of coronavirus infections is becoming a
big threat to the economy.
In addition, many investors are already looking ahead to a
new government under Biden when he is sworn in on Jan. 20.
Another negative factor for the greenback is expectations
that the U.S. Federal Reserve will keep interest rates low for
an extremely long time, many analysts say.
Elsewhere, both the Australian dollar AUD=D3 edged up
slightly to $0.7615, while the New Zealand dollar NZD=D3
bought $0.7157.
Both the Aussie and the kiwi are considered barometers of
risk appetite because of their ties to global commodities.
========================================================
Currency bid prices at 10:04AM (0104 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2269 $1.2251 +0.13% +9.41% +1.2278 +1.2250
Dollar/Yen JPY=D3 103.4900 103.4850 +0.00% -4.73% +103.5800 +103.4800
Euro/Yen EURJPY= 126.97 126.86 +0.09% +4.12% +127.0100 +126.8600
Dollar/Swiss CHF=EBS 0.8835 0.8841 -0.07% -8.70% +0.8842 +0.8828
Sterling/Dollar GBP=D3 1.3511 1.3502 +0.04% +1.85% +1.3515 +1.3495
Dollar/Canadian CAD=D3 1.2810 1.2814 -0.07% -1.43% +1.2827 +1.2805
Aussie/Dollar AUD=D3 0.7617 0.7606 +0.16% +8.57% +0.7623 +0.7604
NZ NZD=D3 0.7159 0.7148 +0.20% +6.43% +0.7164 +0.7148
Dollar/Dollar