* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SINGAPORE, Jan 22 (Reuters) - The dollar was headed for its
worst week of the year on Friday, as investors cheered in the
Joe Biden administration by buying riskier currencies and
refreshed bets that a pandemic recovery could push the greenback
lower still.
Against the euro EUR=EBS , the dollar is down almost 0.8%
this week and it touched a week-low of $1.2173 per euro on
Friday. The dollar index =USD has fallen by the same weekly
margin, and was steady at 90.075 early in the Asia session.
The euro had found some support from the European Central
Bank keeping policy steady and accommodative. Scandinavian currencies have led the charge higher, with the
Norwegian crown NOK= up 1.8% for the week, helped by Norges
Bank's decision to hold its policy rate steady, albeit at zero.
The Swedish crown SEK= is up 1.4% for the week.
The risk-sensitive Antipodean currencies have also been
gainers, with the Australian dollar AUD=D3 up 0.8% and the
kiwi NZD=D3 climbing more than 1% over the week so far.
Sterling rose to a 2-1/2 year high of $1.3745 overnight on
hopes Britain's vaccine roll-out can usher in a rebound in
growth. It held at that level on Friday, up 1% for the week.
The sentiment-driven moves have eroded gains made by the U.S
dollar since the Democrats won control of the U.S. Congress
earlier this month. The dollar had risen along with U.S.
Treasury yields on expectations of more fiscal stimulus and
government borrowing under a Biden administration.
"It's pretty hard to run away from the enduring strong
negative correlation between U.S. equity performance and the
U.S. dollar," said Ray Attrill, head of FX strategy at National
Australia Bank, as stock market sentiment spills over.
"I think the market is far happier focusing on the potential
positives of the Biden administration's proposed fiscal
plans...rather than any of the negatives," he said.
"For the time being, while it seems to be onwards and
upwards for stocks, it's put the dollar back on the back foot."
The dollar was steady against the Japanese yen JPY=EBS on
Friday at 103.58, but has lost 0.3% over the week.
A heavy sell-off in Bitcoin BTC=BTSP saw the
cryptocurrency drop 5% in Asia trade on Friday to hit an almost
three-week low of $28,800.
Later on Friday, preliminary purchasing managers' index
figures are due across Europe and the United States, and
weakness is expected as fresh waves of coronavirus infection
have driven new lockdowns and curtailed growth.
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Currency bid prices at 9:38AM in Singapore (0138 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.2167 $1.2169 -0.01% -0.41% +1.2178 +1.2162
Dollar/Yen JPY=D3 103.5600 103.5100 +0.08% +0.30% +103.6100 +103.5100
Euro/Yen EURJPY= 126.01 125.91 +0.08% -0.72% +126.0600 +125.9000
Dollar/Swiss CHF=EBS 0.8853 0.8851 +0.02% +0.07% +0.8856 +0.8846
Sterling/Dollar GBP=D3 1.3721 1.3736 -0.09% +0.45% +1.3735 +1.3718
Dollar/Canadian CAD=D3 1.2657 1.2638 +0.17% -0.59% +1.2660 +1.2635
Aussie/Dollar AUD=D3 0.7755 0.7765 -0.12% +0.81% +0.7769 +0.7750
NZ NZD=D3 0.7207 0.7220 -0.14% +0.40% +0.7224 +0.7209
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX
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World FX rates https://tmsnrt.rs/2RBWI5E
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