FOREX-Dollar hits new two and a half year low after month of losses

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Updates prices, adds comment and chart)
By Elizabeth Howcroft
LONDON, Nov 30 (Reuters) - The dollar hit its lowest in two
and a half years on Monday while riskier currencies were mixed,
as the global equities rally that has seen risk appetite surge
in November paused for breath.
A combination of Joe Biden's U.S. election win, hopes for
further stimulus and a series of positive COVID-19 vaccine
announcements has seen global market sentiment rally this month,
prompting the dollar to fall and riskier currencies to
strengthen.
China's manufacturing grew at its fastest pace in more than
three years in November, while services sector growth hit a
three-year high, data on Monday showed. On the last day of the month, the dollar was set for its
biggest monthly loss against a basket of currencies since July,
having wiped 2.5% off its value in November. At 1217 GMT it was
at 91.625, down 0.1% on the day =USD .
Meanwhile the New Zealand dollar was poised for its biggest
monthly gain since late 2013, helped by a perception that the
improving global economic outlook lessens the risk of negative
rates.
At 1218 GMT, it was up 0.1% on the day at 0.7042 per U.S.
dollar, having hit a new two-year high overnight NZD=D3 .
"From a risk perspective, the equity market performances
have been very, very significant and that has a been a key
factor in what looks like very clear recycling out of U.S.
dollars into non-dollar assets, taking advantage and positioning
for a more sustained pick-up in global growth," said Derek
Halpenny, EMEA head of research for global markets at MUFG.
"I wouldn't expect the same in December," he added. "I think
that scale of risk-on is unsustainable and I think now a fair
degree of good news in terms of global reflation is priced for
2021."
U.S.-based drugmaker Moderna said on Monday it will apply
for emergency authorization of its COVID-19 vaccine in Europe
and the United States, based on full results from a late-stage
study showing its vaccine was 94.1% effective with no serious
safety concerns. The offshore yuan is on course for its longest streak of
monthly gains in six years, boosted by China's economic recovery
from the coronavirus and steady capital inflows. At 1222 GMT, it was slightly up on the day at 6.5694 versus
the dollar CNH=EBS .
The Trump administration is poised to add China's top
chipmaker SMIC and national offshore oil and gas producer CNOOC
to a blacklist of alleged Chinese military companies, according
to a document and sources, curbing their access to U.S.
investors and escalating tensions with Beijing weeks before
Biden takes office. Elsewhere, the euro rose to new three-month highs of
$1.19905 EUR=EBS . Investors are watching for the key $1.20
level, after the European Central Bank signalled earlier this
year it was carefully monitoring the euro-dollar exchange rate.
But MUFG's Halpenny said the $1.20 level is not a cause for
concern for the ECB, since the trade-weighted euro index is more
steady, indicating that the move is dollar-driven.
Brexit negotiations remain the focus for the pound, which
was steady against the euro at 89.80 pence per euro EURGBP=D3 .
Britain and the European Union are running out of time to
agree on a Brexit trade deal, but if good progress is made this
week the talks could be extended, Britain's environment
secretary said. In focus for commodity-driven currencies such as the
Norwegian crown is the OPEC+ meeting - two days of talks
starting from Monday. OPEC+ members will consider whether to extend existing oil
cuts for three to four months or to increase output gradually
from January, OPEC+ sources told Reuters. The Australian dollar slipped slightly and was flat on the
day at 0.7382 at 1225 GMT AUD=D3 .

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