* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Kevin Buckland
TOKYO, Feb 10 (Reuters) - The dollar traded near two-week
lows as demand for safer assets ebbed on Wednesday, with traders
looking ahead to an expected recovery from the COVID-19 pandemic
this year, driven by massive fiscal and monetary stimulus.
Bitcoin BTC=BTSP consolidated around $46,500 after
reaching a new high at $48,216 overnight following Tesla's
disclosure of a $1.5 billion investment in the leading
cryptocurrency. "The economic outlook for the year, according to market
consensus, appears to be buoyant," said Michael McCarthy, chief
strategist at CMC Markets in Sydney, pointing to the weaker
dollar.
"Sentiment and positioning are key drivers of the market
right now."
Traditionally viewed as a safe haven, the dollar has sunk
against major peers as optimism over monetary and fiscal support
from policymakers, robust corporate earnings and the prospect
that coronavirus vaccines could hasten a return to normality in
the United States and elsewhere have bolstered risk sentiment.
The dollar index =USD edged higher to 90.509 early in the
Asian session on Wednesday, following a two-day loss that took
it as low as 90.427 for the first time this month.
There has been a tug-of-war among traders over the impact on
the dollar of President Joe Biden's planned $1.9 trillion fiscal
stimulus package.
On one hand, it should speed a U.S. recovery relative to
other countries, bolstering the currency; on the other, it is a
major driver in a global reflation narrative that should lift
riskier assets at the dollar's expense.
After a strong start to the year for the greenback, the
latter view appears to be regaining sway -- with last week's
U.S. jobs data providing the turning point, according to Westpac
analysts.
"Friday's disappointing payrolls completely flattened the
USD, that data point casting doubt on the budding U.S.
outperformance narrative and refocusing minds on the prospect
for sustained reflationary U.S. fiscal and monetary policy,"
they wrote in a client note on Wednesday.
"Nursing eye-catching losses, a test of 90 on the cards in
coming days," the note said, referring to the dollar index.
The dollar added 0.1% to 104.68 yen JPY=EBS , after dipping
as low as 104.5 for the first time this month in the previous
session.
The euro EUR=EBS weakened less than 0.1% to $1.21105
following a three-day gain.
The British pound GBP= was about 0.1% lower at $1.3803
after renewing an almost three-year high at $1.382 overnight.
========================================================
Currency bid prices at 10:31AM (131 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2110 $1.2121 -0.08% -0.88% +1.2119 +1.2110
Dollar/Yen JPY=D3 104.6720 104.5700 +0.02% +1.26% +104.6770 +104.5900
Euro/Yen EURJPY= 126.78 126.70 +0.06% -0.11% +126.8100 +126.6600
Dollar/Swiss CHF=EBS 0.8930 0.8923 +0.08% +0.94% +0.8931 +0.8925
Sterling/Dollar GBP=D3 1.3803 1.3813 -0.07% +1.04% +1.3815 +1.3804
Dollar/Canadian CAD=D3 1.2704 1.2692 +0.08% -0.25% +1.2706 +1.2694
Aussie/Dollar AUD=D3 0.7725 0.7739 -0.15% +0.45% +0.7742 +0.7727
NZ NZD=D3 0.7223 0.7240 -0.23% +0.58% +0.7242 +0.7223
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Jacqueline Wong)