* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, Feb 2 (Reuters) - The dollar hovered near a
seven-week high on Tuesday, largely benefiting from a euro
selloff overnight after coronavirus lockdowns choked consumer
spending in Europe's biggest economy.
The euro sank the most in 2-1/2 weeks on Monday after data
showed German retail sales plunged by more than forecast in
December, with the continent still struggling with vaccine
rollouts. The dollar gained even as stocks rallied globally, bucking a
recent trend for the U.S. currency to decline when risk appetite
improves.
Commonwealth Bank of Australia currency analyst Joseph
Capurso said the blip in the correlation came down to the euro,
and market sentiment would continue to drive the dollar's
direction near-term.
"When people think about selling euros, invariably you get
some buying of dollars, because the euro-dollar exchange rate is
easily the most liquid in the world," he said.
On the whole, global markets remain wary with institutional
investors trying to get to grips with the retail trading frenzy
that boosted GameStop Corp and other so-called meme stocks in
recent sessions despite no change in their fundamentals.
The dollar index =USD eased a touch by 0.1% to 90.87 on
Tuesday, amid further gains for Asian stocks.
The gauge rose 0.4% overnight and briefly pushed as high as
91.063 for the first time since Dec. 10.
The euro EUR=EBS edged up 0.2% to $1.20835 after dropping
0.7% on Monday, the most since Jan. 15.
The dollar index has been largely tracking a tight range
recent weeks, after bouncing from a nearly three-year low of
89.206 at the start of the year.
Investors are trying to evaluate whether an almost 7%
selloff in 2020 -- driven by expectations of a global pandemic
recovery amid massive fiscal spending and continued ultra-easy
monetary policy -- is likely to continue.
Hopes for a speedy U.S. recovery got a boost as Democrats
filed a $1.9 trillion budget measure in a step toward bypassing
Republicans on President Joe Biden's massive COVID relief
package, even as a group of Republican senators visited the
White House to discuss a $618 billion alternative plan.
The dollar pulled back 0.1% to 104.875 yen JPY=EBS after
crossing 105 overnight for the first time since mid-November.
The riskier Aussie dollar added 0.4% to 76.485 U.S. cents,
rebounding from two days of losses.
The Reserve Bank of Australia decides on policy Tuesday,
with no change expected.
========================================================
Currency bid prices at 11:05AM (205 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2085 $1.2060 +0.21% -1.09% +1.2088 +1.2060
Dollar/Yen JPY=D3 104.8670 104.9150 +0.00% +1.57% +104.9100 +0.0000
Euro/Yen EURJPY= 126.73 126.56 +0.13% -0.15% +126.7500 +126.5300
Dollar/Swiss CHF=EBS 0.8958 0.8969 -0.12% +1.26% +0.8970 +0.8959
Sterling/Dollar GBP=D3 1.3691 1.3662 +0.22% +0.22% +1.3694 +1.3663
Dollar/Canadian CAD=D3 1.2827 1.2858 -0.22% +0.75% +1.2856 +1.2827
Aussie/Dollar AUD=D3 0.7650 0.7622 +0.37% -0.55% +0.7654 +0.7620
NZ NZD=D3 0.7173 0.7158 +0.22% -0.10% +0.7175 +0.7150
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>