* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Saikat Chatterjee
LONDON, Dec 9 (Reuters) - The U.S. dollar fell broadly
against its peers on Wednesday, snapping a three-day rising
streak, as signs of progress in tackling the COVID-19 pandemic
boosted risk appetite with the Chinese yuan climbing to its
highest level in 2-1/2 years.
With U.S. coronavirus cases crossing the 15 million mark on
Tuesday, regulators moved a step closer to approving a COVID-19
vaccine while Britain started inoculating people on Tuesday.
Riskier currencies including the Australian dollar AUD=D3
led gains against the struggling greenback in early London
trading with U.S. stimulus plans boosting stock markets to
record highs.
Investors are also tracking negotiations over U.S.
coronavirus aid, with the Trump administration proposing a $916
billion package on Tuesday after congressional Democrats
rejected a slimmer plan. Elsa Lignos, global head of FX strategy at RBC Capital
Markets, wrote in a daily note that markets seen comfortable
with the idea "that eventually something will get done."
Against a basket of its rivals =USD , the greenback fell
0.2% to 90.70, snapping a three-day rising streak.
It weakened 0.2% against the euro EUR=EBS to $1.2126 and
is tracking toward an annual loss of 8% against the common
currency, its largest since 2017, as economic activity data
suggests Europe outperforming the United States in recent weeks.
The dollar dropped to 6.5198 yuan in onshore trading
CNY=CXS , its lowest since June 2018, putting the yuan up by
more than 10% from its May lows, boosted by the softer dollar
and steady inflows into Chinese stocks and bonds. CNY/
The British currency was volatile in early trading GBP=D3 ,
up 0.4% at $1.3410 before a Wednesday dinner between British
Prime Minister Boris Johnson and European Commission President
Ursula von der Leyen in Brussels that is seen as a last-ditch
attempt to salvage a Brexit trade deal. Rumblings in the money markets grew with swap markets
indicating a growing demand for dollars heading into the
year-end. Three-month euro cross-currency basis swap spreads
EURCBS3M=ICAP widened to minus 32 bps, well below a March peak
of nearly minus 90 bps.
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euro rises https://tmsnrt.rs/370Duku
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