FOREX-Dollar strengthens as vaccine, stimulus optimism dented

* Euro, sterling fall against dollar
* U.S. dollar index up on stimulus, vaccine uncertainty
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds details, updates prices; previous LONDON)
By Chuck Mikolajczak
NEW YORK, Oct 13 (Reuters) - The U.S. dollar strengthened on
Tuesday as investors turned cautious after a Johnson & Johnson
Covid-19 study was paused while a gauge of inflation rose for a
fourth straight month.
Major equity averages were lower, partly due to a decline in
J&J shares after the company paused due to an unexplained
illness in a participant, dampening optimism a vaccine was on
the horizon.
U.S. consumer prices rose 0.2% in September, matching
expectations, for a fourth straight monthly climb, though the
pace has slowed amid considerable slack in the economy as it
gradually recovers from the COVID-19 recession. The dollar index =USD rose 0.416% against a basket of
other currencies, putting it on track for its biggest daily
percentage gain in three weeks.
The U.S. currency's safe-haven appeal has been curbed by
growing expectations former U.S. Vice President Joe Biden's win
in the Nov. 3 presidential election would bring large stimulus
for the pandemic-hit economy, bolstering the stock market and
investor risk appetite.
The greenback has held within a range of about 2% over the
past three weeks as talks on a fiscal deal have progressed in
fits and starts. On Tuesday, U.S. House Speaker Nancy Pelosi
said the offer President Donald Trump recently made on a package
after he scrapped talks fell far short of what the American
people need, but she still hopes a deal can be reached.
Sterling GBP= was last trading at $1.2987, down 0.59%,
after climbing above the $1.30 mark for the first time in a
month on Friday as Britain's unemployment rate rose by more than
expected to 4.5% in the three months to August.
In addition, as a deadline looms, British Prime Minister
Boris Johnson told his top cabinet ministers on Tuesday he
wanted a free trade deal with the European Union on the right
terms but ending the year without one held "no fear."
Currency bid prices at 10:29 AM (1429 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1753 $1.1815 -0.52% +4.83% +1.1815 +1.1742
Dollar/Yen JPY=D3 105.5350 105.3550 +0.21% -2.80% +105.6200 +105.2900
Euro/Yen EURJPY= 124.03 124.40 -0.30% +1.71% +124.4700 +123.9800
Dollar/Swiss CHF=EBS 0.9135 0.9092 +0.50% -5.58% +0.9142 +0.9091
Sterling/Dollar GBP=D3 1.2988 1.3066 -0.60% -2.07% +1.3067 +1.2960
Dollar/Canadian CAD=D3 1.3130 1.3109 +0.19% +1.10% +1.3146 +1.3100
Aussie/Dollar AUD=D3 0.7165 0.7211 -0.64% +2.12% +0.7210 +0.7157
Euro/Swiss EURCHF= 1.0734 1.0738 -0.04% -1.09% +1.0745 +1.0726
Euro/Sterling EURGBP= 0.9048 0.9040 +0.09% +7.03% +0.9074 +0.9020
NZ NZD=D3 0.6639 0.6647 -0.18% -1.40% +0.6670 +0.6630
Dollar/Dollar
Dollar/Norway NOK=D3 9.2020 9.1545 +0.60% +4.99% +9.2215 +9.1390
Euro/Norway EURNOK= 10.8160 10.7914 +0.23% +9.94% +10.8381 +10.7769
Dollar/Sweden SEK= 8.8086 8.7884 -0.33% -5.76% +8.8280 +8.7569
Euro/Sweden EURSEK= 10.3539 10.3884 -0.33% -1.10% +10.4100 +10.3307