FOREX-Dollar near 2018 lows as traders eye more US stimulus; sterling sheds 1%

* Norwegian crown down 0.8% vs dollar, 0.5% vs euro
* Australian dollar falls 0.2% vs U.S. counterpart
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Olga Cotaga
LONDON, Dec 7 (Reuters) - The U.S. dollar index remained
near Friday's two-and-a-half-year low on Monday as weak U.S.
jobs data last week heightened expectations of economic aid,
while sterling sank as Britain and the European Union made a
last-ditch attempt to strike a trade deal.
Fears rose of a chaotic no-trade deal Brexit on Dec. 31 when
the United Kingdom finally leaves the EU's orbit. In the United States, Friday's jobs data showed non-farm
payrolls increased by 245,000 last month, the smallest gain
since May, a sign the jobs recovery slowing during the third
wave of coronavirus infections. "The recent loss of momentum is a concern as it suggests
that it will take longer to reverse the negative hit to the U.S.
labour market from the COVID shock, given renewed disruption
from the third wave," said Lee Hardman, currency analyst at
MUFG, adding that this "will increase pressure on both Congress
and the Fed to deliver further stimulus."
Talks aimed at delivering fresh coronavirus relief to
gathered momentum in the U.S. Congress on Friday, as a
bipartisan group of lawmakers worked to put the finishing
touches on a $908 billion bill. A final version of the proposed legislation is expected
earlier this week. At the same time, the Federal Reserve is
expected to make more adjustments to its quantitative easing
later this month.
"In the current trading environment, the increasing
speculation over looser U.S. fiscal and monetary policies
provides support for risk assets and weighs on the U.S. dollar,"
Hardman said.
An index which tracks the dollar against a basket of
currencies was last trading up 0.1% at 90.96 =USD , close to
90.47, its weakest since April 2018.
Over the past week, the U.S. dollar sell-off has extended
further with weakness most evident against the Swiss franc, euro
and Canadian dollar.
The euro fell 0.1% to 1.2107 EUR=EBS , but remained close
to $1.2177, its highest since April 2018.
The British pound was down 1% at $1.3287 GBP=D3 and also
by 1% against the euro at 91.07 pence EURGBP=D3 .
Elsewhere, the Norwegian crown fell 0.8% at 8.8590 against
the dollar NOK=D3 , while shedding 0.5% versus the euro at
10.7255 EURNOK=D3 , having touched earlier a
two-and-a-half-week low of 10.7340.
The Australian dollar fell 0.2% at 0.7407 versus the U.S.
dollar AUD=D3 .