* Piecemeal stimulus hopes sink safe havens of dollar and
yen
* Yen hits three-week low; AUD gains
* Kiwi slips as RBNZ explores negative rates
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SINGAPORE, Oct 8 (Reuters) - The safe-haven dollar and yen
nursed losses on Thursday, after the revival of hopes for some
U.S. spending improved investor sentiment and appetite for
riskier currencies.
A flurry of late-Tuesday tweets from President Donald Trump,
after he cancelled talks with Democrats over coronavirus relief,
suggested he was open to piecemeal spending measures.
That lifted equity markets and commodity currencies and sank
the safe-haven yen JPY= to a three-week low of 106.11 per
dollar overnight. The dollar was weaker on most other majors.
The euro EUR= edged up 0.2% to $1.1767 and held there
early in the Asia session. The risk-sensitive Australian dollar
AUD=D3 lifted off a one-week low and rose about 0.5% overnight
to hold at $0.7137 in Asia. AUD/
With no fresh clues on stimulus, morning moves were slight
and leaned in favour of the greenback. The New Zealand dollar
NZD=D3 slipped 0.4% after a central bank official said the
bank was "actively working" on negative rates. Top White House officials have played down the likelihood
that anything gets passed, but House Speaker Nancy Pelosi is
pursuing a standalone bill for aid to airlines. "It looks like they still can't agree on a bigger package,"
said Commonwealth Bank of Australia currency analyst Joe
Capurso. "If they could get an agreement on that, you'd get a
bit more of a reaction and the U.S. dollar would fall."
The overnight mood had been further supported by hints at
even more easing from the U.S. Federal Reserve in the minutes of
its September meeting.
Many participants had assumed the economy would be supported
by fiscal spending, and some are open to further debate about
the Fed's bond buying programme. "This nuance did not come across in Powell's post-meeting
press conference nor in recent speeches," National Australia
Bank economist Tapas Strickland said in a note on Thursday.
"In that vein it is worth noting that the Fed's (Loretta)
Mester on Monday said she might support shifting asset purchases
to more longer-dated bonds."
Speeches at 1610 GMT and at 1800 GMT from Fed members Eric
Rosengren and Raphael Bostic, respectively, will be closely
watched for any further hints at the Fed's internal debates.
Sterling and the New Zealand dollar lagged broad gains
against the dollar overnight, and were weighed in early Asian
trade.
The kiwi NZD=D3 dipped 0.4% to $0.6558 after a Reserve
Bank of New Zealand official told a media briefing on the bank's
policy tools that it was "actively working" on negative interest
rates and a funding-for-lending programme.
Concerns that the latest Brexit talks were proving less
promising than hoped dragged on the pound GBP= , and it was
last steady at $1.2918. GBP/
Bank of England Governor Andrew Bailey joins a panel
discussion on the impact of COVID-19 at 0725 GMT where remarks
on negative rates or other policy considerations could move the
currency.
Also on the horizon is the U.S. vice presidential debate due
to begin at 0100 GMT, infused with fresh significance by Trump's
battle with COVID-19. German trade data at 0600 GMT U.S. jobless
figures due at 1230 GMT are also awaited.
========================================================
Currency bid prices at 8:43AM (043 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1766 $1.1765 +0.00% +4.94% +1.1770 +1.1762
Dollar/Yen JPY=D3 106.0700 105.9550 +0.07% -2.38% +106.1000 +105.9550
Euro/Yen EURJPY= 124.79 124.63 +0.13% +2.33% +124.8300 +124.6500
Dollar/Swiss CHF=EBS 0.9170 0.9173 -0.02% -5.22% +0.9174 +0.9167
Sterling/Dollar GBP=D3 1.2922 1.2919 +0.02% -2.58% +1.2923 +1.2916
Dollar/Canadian CAD=D3 1.3255 1.3255 +0.02% +2.05% +1.3261 +1.3252
Aussie/Dollar AUD=D3 0.7133 0.7141 -0.11% +1.66% +0.7142 +0.7131
Euro/Swiss EURCHF= 1.0791 1.0789 +0.02% -0.56% +1.0792 +1.0788
Euro/Sterling EURGBP= 0.9102 0.9102 +0.00% +7.67% +0.9116 +0.9104
NZ NZD=D3 0.6559 0.6582 -0.36% -2.54% +0.6580 +0.6558
Dollar/Dollar
Dollar/Norway NOK=D3 9.2895 9.3010 +0.00% +6.03% +9.2940 +0.0000
Euro/Norway EURNOK= 10.9337 10.9430 -0.08% +11.15% +10.9588 +10.9310
Dollar/Sweden SEK= 8.8782 8.8743 +0.03% -5.02% +8.8847 +8.8717
Euro/Sweden EURSEK= 10.4553 10.4517 +0.03% -0.13% +10.4560 +10.4455
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX World central bank news
CEN
Economic Forecasts... ECON Official rates... INT/RATE
Forex Diary....... MI/DIARY Top events........ M/DIARY
Diaries........... DIARY Index........ IND/DIARY
Press Digests..... PRESS Polls on G7 economies.. SURVEY/
European markets...... MARKETS/