FOREX-Dollar falls to fresh 2-1/2-year low on U.S. stimulus bets

* Mnuchin says Trump would sign McConnell stimulus deal
* U.S. ADP report shows slowing private sector hiring
* Euro hits fresh 2-1/2-year peak
* Sterling falls on negative Brexit headline
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds Senator Schumer's comments on stimulus, updates prices)
By Gertrude Chavez-Dreyfuss and Suzanne Barlyn
NEW YORK, Dec 2 (Reuters) - The safe-haven dollar sank to a
fresh 2-1/2-year low in choppy trading on Wednesday, pressured
once again by expectations of further fiscal stimulus for the
United States.
The dollar, however, last traded little changed on the day
amid wrangling in Congress over additional coronavirus aid.
U.S. Senate Democratic Leader Chuck Schumer on Wednesday
rejected the latest Republican coronavirus aid plan. He
described it as an "inadequate, partisan proposal" that would
help shield businesses from liability lawsuits but fail to help
workers hurt by the pandemic. That came a day after a proposed bipartisan coronavirus
pandemic-related economic stimulus package on Tuesday worth $908
billion lifted the market's appetite for risk and pushed the
dollar to its lowest level since April 2018.
That trend continued on Wednesday, after U.S. Treasury
Secretary Steven Mnuchin said Republican President Donald Trump
would sign a pandemic relief deal proposed by Senate Majority
Leader Mitch McConnell. For months, Republican McConnell has pushed for a $500
billion plan that Democrats rejected as insufficient.
Vassili Serebriakov, an FX strategist at UBS in New York
said the momentum for a weaker dollar should continue. "Any
bounces in the dollar are likely to find sellers."
In midday trading, the dollar index, which measures the
greenback against a basket of major currencies, was flat to
slightly lower at 91.146 =USD , after hitting 91.100 overnight,
the lowest level since late April 2018.
Wednesday's data showing slower U.S. private hiring last
month supported some safe-haven buying of the dollar earlier in
the session.
Private payrolls increased by 307,000 jobs in November, the
ADP National Employment Report showed, lower than economists'
forecast for a 410,000 rise in new jobs. Data for October,
though, was revised up to show 404,000 jobs added instead of the
initially reported 365,000. Britain's approval of a COVID-19 vaccine and the possibility
that U.S. unemployment data will help spur a pandemic relief
package in Washington are likely to support investors' risk
tolerance, driving them away from the dollar, UBS' Serebriakov
said.
The UK approved Pfizer Inc's PFE.N COVID-19 vaccine on
Wednesday, jumping ahead of the rest of the world in the race to
begin the most crucial mass inoculation program in history.
The euro, meanwhile, was up 0.2% at $1.2094 EUR=EBS , after
earlier hitting $1.2108, the highest since late April 2018.
The European Central Bank meets next week and analysts said
the ECB could act to stem the euro's rapid rise.
Against the yen, the dollar rose 0.2% to 104.47 JPY=EBS ,
after the Bank of Japan signaled its readiness to extend
pandemic-response programs. Bitcoin was up 1% at $18,978 BTC=BTSP , after hitting a
record high of $19,918.01 on Tuesday.
Sterling fell as Britain and the European Union quickly
approached a make-or-break moment in trade talks, with many
investors doubting a deal will be reached. GBP/
The pound last traded down 0.5% against the dollar at
$1.3361 GBP=D3 .
The risk-sensitive Aussie dollar rose 0.4% versus the
greenback to US$0.74 AUD=D3 . It bounced in Asia as data showed
Australia's economy rebounded more than expected in the third
quarter.