* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar falls broadly as yields fall, equities rally
* Currencies price in low chance of big U.S. stimulus
* Australian dollar falls after RBA statement
By Stanley White
TOKYO, Nov 6 (Reuters) - The dollar nursed losses against
many currencies on Friday as a contentious U.S. presidential
election diminished hopes for large stimulus to support the
economy any time soon.
Investors are betting that Democrat Joe Biden will become
the next president but Republicans will retain control of the
Senate, which will make it difficult for the Democrats to pass
the larger fiscal spending they have been pushing.
Biden maintains an edge over President Donald Trump, but a
few important states are still counting votes and Trump is
mounting legal challenges to vote counts, so there is still a
high degree of uncertainty. A large decline in long-term Treasury yields due to
expectations for less fiscal spending, combined with a rally in
equities and other risk assets, has placed the dollar under
consistent selling pressure that is likely to continue.
"There is a green light for the resumption of dollar
selling, reflecting past declines in real interest rates," said
Ray Attrill, head of foreign exchange strategy at National
Australia Bank in Sydney.
"There's an argument that the U.S. Federal Reserve will have
to backstop risk assets. The pandemic is still trending in the
wrong direction."
The dollar traded at 103.59 yen JPY=D3 in Asia on Friday,
close to an eight-month low.
Against the euro EUR=EBS , the dollar traded at $1.1816
after falling 0.87% in the previous session.
The British pound GBP=D3 traded at $1.3131, holding onto a
hefty 1.23% gain from Thursday.
The dollar index =USD against a basket of six major
currencies stood at 92.654, close to a two-week low.
Investors also await the release of U.S. non-farm payrolls
later on Friday, which is forecast to show a slight slowdown in
job creation.
Worries about the U.S. economy are growing, which is a
reason to expect declines in the dollar to continue into next
year, according to some analysts.
In addition to the uncertainty about the presidential
election, new coronavirus cases are rising to record levels in
several states, which could curb U.S. economic activity.
Elsewhere, the Australian dollar AUD=D3 fell against the
greenback in Asian trading after the country's central bank said
it is prepared to expand bond purchases if needed to support the
economy. The declines in the Aussie also dragged the New Zealand
dollar NZD=D3 lower.
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Currency bid prices at 9:35AM (0035 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1816 $1.1828 -0.11% +5.39% +1.1848 +1.1809
Dollar/Yen JPY=D3 103.5900 103.5500 -0.05% -4.71% +103.7000 +103.4950
Euro/Yen EURJPY= 122.39 122.40 -0.01% +0.36% +122.6700 +122.3700
Dollar/Swiss CHF=EBS 0.9045 0.9042 -0.03% -6.59% +0.9049 +0.9030
Sterling/Dollar GBP=D3 1.3131 1.3153 -0.15% -0.98% +1.3156 +1.3132
Dollar/Canadian CAD=D3 1.3068 1.3046 +0.11% +0.54% +1.3085 +1.3038
Aussie/Dollar AUD=D3 0.7265 0.7285 -0.27% +3.55% +0.7283 +0.7255
NZ NZD=D3 0.6762 0.6774 -0.15% +0.52% +0.6774 +0.6756
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX