FOREX-Dollar slips on $2 trillion U.S. plan, 'riskier' currencies gain

* White House and Senate agree $2 trillion aid package
* Aussie dollar, Sterling, Kiwi dollar all gain
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Iain Withers
LONDON, March 25 (Reuters) - The dollar slipped on Wednesday
after U.S. politicians agreed a $2 trillion stimulus package
that steadied money market nerves and prompted investors to buy
back into 'riskier' currencies.
The export-exposed Australian dollar and Norwegian crown
made sharp gains, while sterling also rallied from the lows of
recent weeks, which were precipitated by a scramble for dollars.
Panicked investors fearful about the coronavirus pandemic
had liquidated almost everything for U.S. dollars, with the
world's most liquid currency seen as a haven in times of crisis.
U.S. Senate majority leader Mitch McConnell announced a
breakthrough on a package to shield the world's largest economy
from the economic fallout of the outbreak. It will be put to a
vote on Wednesday. "We are seeing the most oversold currencies bought back on
the back of the stimulus package," said Kenneth Broux, FX
strategist at Societe Generale.
"The pandemic is still spreading and policymakers have put
all their chips on the table. We will have to wait now to see
how things will pan out," Broux added
The dollar fell against a basket of currencies, last down
0.2%. =USD
Among the gainers were the Australian dollar, Norwegian
crown and British pound, all up around 1%. AUD=D4 NOK=
The euro was last up nearly 0.3% versus the greenback after
losing some of its early gains, changing hands at $1.08145.
The dollar barely shifted against the Japanese yen and Swiss
franc, both also seen as safe havens. JPY=EBS CHF=EBS
The U.S. stimulus follows coordinated action by central
banks around the world to boost the supply of dollars in an
attempt to ease stress in money markets.
Expected price swings on some of the world's most actively
traded currencies retreated, with implied volatility on
one-month euro-dollar and pound-dollar options falling.
But there was no similar swing in cross-currency volatility
in the Japanese yen versus the dollar, which analysts said
reflected Japanese investors still struggling to snap up U.S.
dollars ahead of the country's fiscal year end next week.
"There's a lot of reasons to believe that we're not out of
the woods yet. People still feel that the downside risk is far
more prevalent," said Chris Weston, head of research at
Melbourne brokerage Pepperstone.

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