* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar grinds lower against many currencies
* Improving risk appetite draws funds from dollar
* Traders closely monitoring moves in yuan
By Stanley White
TOKYO, Nov 26 (Reuters) - The dollar was on the defensive on
Thursday as downbeat U.S. economic data and optimism about
coronavirus vaccines prompted investors to seek out riskier
assets tied to global commodities and emerging markets.
The British pound traded near a more than two-month high
against the dollar as investors awaited details on trade talks
between Britain and the European Union this week.
The dollar's fall has been so rapid that it could rebound in
the short term, but some investors still expect a decline over
the longer term as they shift positions in anticipation that the
coronavirus outbreak will wane next year.
"A China-led recovery in the global economy and commodities
should benefit commodities currencies," said Masafumi Yamamoto,
chief currency strategist at Mizuho Securities in Tokyo.
"The outlook is good, but we are reaching levels where
authorities might feel some concern. Other emerging market
currencies with good fundamentals should benefit."
Against the euro EUR=EBS , the dollar stood at $1.1925,
close to its weakest in more than two months.
Sterling GBP=D3 bought $1.3387, which is near its
strongest level since Sept. 2. The pound held steady at 89.06
pence per euro EURGBP=D3 .
The dollar was little changed at 104.33 yen JPY=D3 .
Investors have rushed to riskier currencies and emerging
market assets in recent weeks after positive data on COVID-19
vaccine efficacy and signs of stability in U.S. politics, which
has weighed broadly on the dollar.
Sentiment for the greenback took a hit after data on
Wednesday showed weekly U.S. jobless claims rose more than
expected and personal incomes fell. Some economists say more job losses are likely as many U.S.
states reinforce restrictions on businesses to curb a spread of
coronavirus infections.
The dollar index =USD against a basket of six other
currencies was near the lowest in more than two months.
In Asia, trading in the dollar is likely to be subdued
because U.S. financial markets are closed later on Thursday for
the Thanksgiving holiday.
Investors will closely monitor the onshore yuan CNY=CFXS
to see if China's currency will resume its advance toward a
29-month high set last week.
The Australian dollar AUD=D3 traded near its highest since
September, supported by improving risk appetite and strong
Chinese demand for the commodities that Australia exports.
The New Zealand dollar NZD=D3 traded near its strongest
level in more than two years.
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Currency bid prices at 9:16 AM (0016 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1925 $1.1914 +0.10% +6.37% +1.1925 +1.1915
Dollar/Yen JPY=D3 104.3300 104.4200 +0.00% -3.86% +104.4150 +0.0000
Euro/Yen EURJPY= 124.40 124.43 -0.02% +2.01% +124.4900 +124.3800
Dollar/Swiss CHF=EBS 0.9073 0.9081 -0.07% -6.22% +0.9082 +0.9075
Sterling/Dollar GBP=D3 1.3387 1.3386 +0.03% +0.96% +1.3389 +1.3382
Dollar/Canadian CAD=D3 1.3004 1.3007 -0.02% +0.11% +1.3007 +1.3002
Aussie/Dollar AUD=D3 0.7364 0.7365 -0.01% +4.96% +0.7366 +0.7362
NZ NZD=D3 0.7006 0.7007 -0.03% +4.10% +0.7014 +0.7004
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX