* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Hideyuki Sano
TOKYO, Sept 28 (Reuters) - The dollar hovered near a
two-month peak against at a basket of currencies on Monday as
investors look to a barrage of upcoming economic data and
political developments in the United States before making any
fresh bets on the U.S. currency.
While a rebound in U.S. stocks on Friday has helped to curb
the ascent of the dollar, deemed as a safe-haven, signs of
slowdown in the nascent economic recovery and political
uncertainties have kept investors on guard.
The dollar index stood at 95.544 =USD . Last week it hit a
two-month high of 94.745 last week and posted its biggest weekly
rise since early April.
The euro changed hands at $1.1635 EUR= , having dropped to
$1.16125 on Friday to its lowest level in two months.
The British pound stood at $1.2767 GBP=D4 , slightly above
Wednesday's two-month low of $1.2676.
Data on U.S. currency futures positions released on Friday
pointed to more upside in the dollar's recovery, with
speculators holding a big net short position in the greenback.
Data from U.S. Commodity Futures Trading Commission showed
speculators held a net short position of $33.989 billion
NETUSDALL= , up from $31.524 billion the week before and near
the highest level in almost ten years. The flip side of that was a still very large net long
positions in the euro, which showed a slight increase last week
to $27.922 billion EURNETUSD= .
"We need to be wary of a weaker euro due to further
unwinding of euro long positions. We have no shortage of
concerns in Europe including rise of coronavirus infections in
France and so on, attempts by European Central Bank policymakers
to talk down the euro and the Brexit," Makoto Noji, chief
currency strategist at SMBC Nikko Securities said in report.
Against the yen, the dollar was more subdued at 105.46 yen
JPY= .
Investors now look to the first U.S. Presidential debate on
Tuesday as the election in early November has started to loom
large.
"Few people will be trying to bet on the election outcome.
At least they will wait until tomorrow's TV debate," said
Kyosuke Suzuki, director of forex at Societe Generale.
Ahead of the debate, the New York Times reported on Sunday
President Donald Trump paid extremely little in income taxes in
recent years as heavy losses from his business enterprises
offset hundreds of millions of dollars in income. Few investors now expect the U.S. Congress to pass any
stimulus package, seen as vital to support the pandemic-stricken
economy, before the election.
But there are growing worries the economic recovery is
slowing as many of the stimulus programmes have expired, curbing
consumer spending.
The week provides markets with more U.S. data to gauge the
health of the world's biggest economy, including consumer
confidence on Tuesday, manufacturing survey on Thursday and jobs
data on Friday.