FOREX-Dollar wobbles as traders eye U.S. fiscal stimulus debate

(Adds U.S. data in 14th and yuan in 17th paragraphs)
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar down against most currencies
* Euro continues to ride optimism on stimulus
* U.S. Republicans and Democrats tussle over fiscal spending

By Stanley White
TOKYO, July 22 (Reuters) - The dollar nursed losses against
most currencies in Asian trade on Wednesday, undermined by
concern that Republicans and Democrats are struggling to reach
consensus on the next round of U.S. economic stimulus measures.
The euro traded near its strongest level in more than a year
after European leaders agreed a stimulus plan to fuel recovery
from the economic drag caused by the COVID-19 pandemic.
Risk appetite has improved greatly this week as progress in
developing vaccines for the novel coronavirus reduced the U.S.
dollar's safe-harbour appeal.
Investors also expect a massive amount of fiscal spending to
support growth in major economies but could easily be
disappointed if any stimulus falls short of expectations.
"You could say the dollar is weaker due to a risk-on move,"
said Shane Oliver, head of investment strategy and chief
economist at AMP Capital Investors in Sydney.
"Ironically, the dollar's weakness has been exacerbated by
concerns that the United States is not doing as much as the
Europeans have on stimulus."
Against the British pound GBP=D3 , the dollar traded at
$1.2727, close to a six-week low.
The dollar fell to 0.9323 Swiss franc CHF= to reach the
lowest since March.
The euro EUR=D3 briefly touched the highest since Jan. 10
before settling at $1.1539.
Against the pound, the euro EURGBP= was little changed at
90.67 pence.
The dollar was steady at 106.79 yen JPY= .
Republicans and Democrats remained far apart on Tuesday on
how much to spend on the next round of coronavirus relief as
they discussed proposals to extend unemployment insurance for
Americans thrown out of work and provide more money for schools.
House Speaker Nancy Pelosi said the $1 trillion package the
Republicans are considering is not sufficient. The
Democratic-run House of Representatives passed a $3 trillion
relief bill two months ago that the Republican-majority Senate
has ignored.
Some investors in the dollar may look to U.S. existing home
sales due later Wednesday and weekly jobless claims on Thursday
for inspiration, but the focus is likely to remain on
policymakers' response to an unprecedented public health crisis.
Concern about disagreement over stimulus spending in the
United States is in contrast to the European Union.
The 27-member bloc worked over the weekend to narrow their
differences and agree a 750 billion euro ($864.90 billion)
recovery fund and a 1.1 trillion euro 2021-2027 budget to help
the continent recover from its deepest recession since World War
Two. The onshore yuan CNY=CFXS rose to 6.9649 per dollar to
reach the strongest since March 11, highlighting the dollar's
lack of support during the Asian session.
Elsewhere, the Antipodean currencies took advantage of the
greenback's weakness and pushed higher.
The Australian dollar AUD=D3 rose to $0.7144, closing in
on the highest since April last year.
The New Zealand dollar NZD=D3 edged up to $0.6649,
approaching the highest since January this year.
($1 = 0.8672 euros)