* Control of both Houses gives Biden scope to push agenda
* Yuan edges lower against the dollar
* Dollar outlook mixed
* Graphic: World FX rates in 2021 https://tmsnrt.rs/2RBWI5E
(Adds details, updates prices; changes byline, previous LONDON)
By Chuck Mikolajczak
NEW YORK, Jan 7 (Reuters) - The dollar rebounded from levels not seen since March 2018 to its highest
in a week on Thursday, on the potential for an economic rebound and profit-taking by investors who had
been betting on the euro.
The dollar index =USD , which measures the U.S. currency against a basket of peers, rose 0.581% at
89.835 after rising as high as 89.979 with the euro EUR= down 0.45% to $1.2269.
The dollar saw little movement on Wednesday as hundreds of President Donald Trump's supporters stormed
the U.S. Capitol on Wednesday in a bid to overturn his election defeat, battling police in the hallways
and delaying the certification of Democratic President-elect Joe Biden's victory for hours. But the certification of Biden's victory has raised expectations for more fiscal stimulus measures to
bolster the economic outlook and pushed longer-dated bond yields higher, with the benchmark 10-year
US10YT=RR climbing above 1% on Wednesday for the first time since March. "Once the rates start to move, as they did yesterday, it wasn't a big move but it was in the right
direction, that is the direction of the future," said Joseph Trevisani, senior analyst at FXStreet.com.
"It's debatable on how long it is going to take for the vaccines to work and hopefully end the
pandemic but once that happens you are going to get a much stronger U.S. recovery and that will lead to a
stronger dollar."
Still, many analysts maintain a weaker long-term outlook for the dollar, and see the recent advance as
the unwinding of bearish bets against the greenback, after it fell nearly 7% in 2020 and as much as 0.9%
in the new year.
The yuan edged lower at 6.47 per dollar CNH=EBS after Chinese authorities signaled a desire for a
slower pace of gains. The remarks by the State Administration of Foreign Exchange (SAFE) on Wednesday follow an advance of
around 10% on the greenback since last May as China's economic rebound has led the world's pandemic
recovery.
Sterling GBP= was last trading at $1.3562, down 0.33% on the day as it continued to meander below
the almost three-year high of $1.3703 touched on Monday.
Bitcoin BTC=BTSP marked a fresh all-time high as it approached the $40,000 mark on Thursday, and was
last up 6.56% at $39,266.00.
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Currency bid prices at 11:07AM (1607 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 89.8350 89.3250 +0.58% +0.00% +89.9790 +89.2940
Euro/Dollar EUR=EBS $1.2270 $1.2328 -0.47% +0.42% +$1.2345 +$1.2245
Dollar/Yen JPY=D3 103.8250 103.0400 +0.84% +0.60% +103.9500 +103.1000
Euro/Yen EURJPY= 127.38 127.00 +0.30% +0.36% +127.4500 +126.9200
Dollar/Swiss CHF=EBS 0.8845 0.8781 +0.73% -0.02% +0.8861 +0.8778
Sterling/Dollar GBP=D3 $1.3560 $1.3610 -0.37% -0.75% +$1.3632 +$1.3537
Dollar/Canadian CAD=D3 1.2713 1.2680 +0.28% -0.15% +1.2733 +1.2665
Aussie/Dollar AUD=D3 $0.7753 $0.7806 -0.67% +0.80% +$0.7817 +$0.7726
Euro/Swiss EURCHF= 1.0852 1.0826 +0.24% +0.40% +1.0862 +1.0826
Euro/Sterling EURGBP= 0.9045 0.9055 -0.11% +1.21% +0.9077 +0.9016
NZ NZD=D3 $0.7246 $0.7295 -0.70% +0.88% +$0.7304 +$0.7226
Dollar/Dollar
Dollar/Norway NOK=D3 8.4315 8.4165 +0.34% -1.65% +8.4715 +8.4065
Euro/Norway EURNOK= 10.3485 10.3680 -0.19% -1.13% +10.3785 +10.3325
Dollar/Sweden SEK= 8.1976 8.1645 +0.02% +0.01% +8.2319 +8.1577
Euro/Sweden EURSEK= 10.0585 10.0565 +0.02% -0.18% +10.0905 +10.0505