* Congress passes U.S. stimulus bill, awaits Trump approval
* Aussie, NZ dollar fall vs dollar
* U.S. housing, consumer confidence data disappoints
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 22 (Reuters) - The dollar rose on Tuesday in thin, choppy trading, as investors stepped
back and assessed the implications of the U.S. stimulus bill that Congress passed overnight and a
coronavirus variant raging in Britain.
There seemed to be a risk-off tone in the market, with U.S. stocks down except for Nasdaq, and U.S.
Treasuries rallying. Currencies associated with higher risk appetite such as the Australian and New
Zealand dollars, as well as the euro and sterling were also weaker against the greenback.
Tuesday's data were weaker than expected, with U.S. existing home sales falling more than expected in
November and the consumer confidence index lower than forecast. Overnight, the U.S. Congress passed a $892 billion COVID-19 aid package that aims to shore up the
nation's pandemic response and bolster the battered economy. The coronavirus package is tied to general
federal government funding to avert a government shutdown and is now awaiting President Donald Trump's
approval to become law. "The stimulus was already baked in as something that would be done. In fact, it seems small and
Democrats promised they will do more since more is indeed needed," said Juan Perez, senior trader at
Tempus Consulting in Washington.
The new coronavirus variant, meanwhile, roiled markets earlier on Monday, but concerns have eased as
medical experts seemed to indicate that the vaccines currently being deployed would be effective against
it.
Moderna, for instance, expects immunity from its vaccine to protect against the variant and is
performing more tests in coming weeks to confirm, the company said in a statement to CNN. "The truth is, COVID remains a thorn on the side of Europe and Asia alone isn't the world. This
hemisphere and the other side of Atlantic," are lagging in terms of fighting the virus, Perez said.
In mid-morning trading, the dollar index rose 0.3% to 90.37 =USD , as the euro fell 0.2% to $1.2213
EUR=EBS .
The dollar's timid gains come in a market that is positioned for a weaker dollar. It's pricing in a
pandemic recovery that lifts commodity prices and benefits exporters and their currencies at the expense
of the dollar.
Sterling also slid against the dollar, down 0.9% at $1.3347 GBP=D3 . The pound sank versus the euro
as well, down 0.5% at 91.44 pence per euro.
Talks between the French and British governments to reopen their border continued, but trade talks
between the European Union and the UK remained stalled, with disagreements over fishing rights the main
obstacle.
But Britain crashing out of the EU without a trade deal and expectations that the new coronavirus
variant could worsen the economic outlook of Europe might dent the consensus, said Marios Hadjikyriacos,
an analyst at XM.
The Australian dollar AUD= fell 0.7% to US$0.7532. The New Zealand dollar NZD= lost 0.8% to
US$0.7040.
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Currency bid prices at 10:12AM (1512 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.4180 90.1320 +0.33% +0.00% +90.4740 +90.0550
Euro/Dollar EUR=EBS $1.2207 $1.2248 -0.35% +8.87% +$1.2257 +$1.2201
Dollar/Yen JPY=EBS 103.6100 103.3150 +0.29% -4.66% +103.6350 +103.2950
Euro/Yen EURJPY= 126.48 126.45 +0.02% +3.71% +126.6600 +126.1900
Dollar/Swiss CHF=EBS 0.8874 0.8859 +0.17% -8.29% +0.8880 +0.8846
Sterling/Dollar GBP=D3 $1.3335 $1.3471 -0.98% +0.57% +$1.3467 +$1.3327
Dollar/Canadian CAD=D3 1.2906 1.2858 +0.39% -0.64% +1.2913 +1.2845
Aussie/Dollar AUD=D3 $0.7527 $0.7587 -0.78% +7.29% +$0.7590 +$0.7527
Euro/Swiss EURCHF= 1.0830 1.0841 -0.10% -0.21% +1.0847 +1.0822
Euro/Sterling EURGBP= 0.9150 0.9094 +0.62% +8.23% +0.9154 +0.9084
NZ NZD=D3 $0.7037 $0.7096 -0.82% +4.59% +$0.7105 +$0.7038
Dollar/Dollar
Dollar/Norway NOK=D3 8.7165 8.6340 +1.00% -0.59% +8.7275 +8.6325
Euro/Norway EURNOK= 10.6420 10.6020 +0.38% +8.17% +10.6588 +10.5540
Dollar/Sweden SEK= 8.3144 8.2352 +0.62% -11.05% +8.3203 +8.2442
Euro/Sweden EURSEK= 10.1501 10.0880 +0.62% -3.12% +10.1593 +10.0945