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FOREX-Dollar slips as outlook stays grim; offshore Chinese yuan rises

    * Euro climbs on vaccine optimism
    * Dollar weakens to more than 1-week low
    * U.S. CPI rises less than expected, little FX impact
    * Graphic: World FX rates in 2020

 (Recasts, adds new comment, U.S. data, FX table, updates prices, changes byline, dateline; previous
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Nov 17 (Reuters) - The dollar fell to a one-week low on Tuesday, still weighed down by
optimism over a coronavirus vaccine, as the outlook for the currency remained downbeat with the Federal
Reserve and U.S. Congress poised to do more to ease COVID-19's economic damage.
    The euro, sterling, Swiss franc and yen rose against the dollar, while the Chinese yuan hit its
highest against the U.S. currency since June 2018.
    Drugmaker Moderna became the second U.S. pharmaceutical company in a week to report positive
results from trials of a COVID-19 vaccine, considered necessary to eradicate the pandemic.
    Policymakers' response to a record number of coronavirus cases, hospitalisations and deaths in several
U.S. states is likely to remain of greater concern.
    "We're still seeing a follow-through from that vaccine optimism with yesterday's news on Moderna,"
said Edward Moya, senior market analyst at OANDA in New York.
    "But the key story is still about COVID-19 and the short-term pressures it's going to put not just on
the U.S, but abroad and it's going to force Congress or the Federal Reserve to do more. Whether we get a
stimulus after (President-elect) Joe Biden takes office or whether the Fed does more, the trajectory for
the dollar is pretty clear: it's going to be much lower."
    In mid-morning trading, the dollar index fell to a one-week low against a basket of major
currencies, and last stood at 92.357, down 0.2%.
    Data showing U.S. retail sales rising less than expected in October had minimal dollar impact. Retail
sales rose 0.3% last month, the Commerce Department said on Tuesday. Economists polled by Reuters had
forecast retail sales would gain 0.5% in October.
    Against the yen, the dollar fell 0.4% to 104.12, while the euro inched higher by 0.1% to
    "Euro/dollar remains well-supported, buoyed by global optimism," said Chris Turner, global head of
markets at ING in a note to clients.
    "Given the challenges Europe faces – in the middle of a second lockdown – the euro certainly won't
lead the rally against the dollar, but we think the dollar decline is broad enough to drag euro/dollar
back to $1.1920."
    Europe's shared currency, however, fell against a broadly stronger pound, which gained on media
reports that Britain could reach a post-Brexit trade agreement with the European Union by early next week.

    The euro was last down 0.3% versus sterling at 89.56 pence.
    The offshore yuan, meanwhile, hit its highest since June 2018 against the dollar at 6.5457
as positive economic data continued to support the Chinese currency.
    Currency bid prices at 10:02AM (1502 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Dollar index                 $92.3850       92.5060     -0.12%         +0.00%      +92.6140    +92.2640
 Euro/Dollar                  $1.1870        $1.1852     +0.15%         +5.88%      +1.1894     +1.1843
 Dollar/Yen                   104.1050       104.5250    -0.39%         -4.14%      +104.5750   +104.0950
 Euro/Yen                     123.55         123.93      -0.31%         +1.31%      +124.0200   +123.5600
 Dollar/Swiss                 0.9104         0.9124      -0.20%         -5.90%      +0.9128     +0.9089
 Sterling/Dollar              1.3252         1.3202      +0.39%         -0.08%      +1.3272     +1.3192
 Dollar/Canadian              1.3092         1.3073      +0.15%         +0.79%      +1.3116     +1.3065
 Aussie/Dollar                0.7294         0.7321      -0.36%         +3.95%      +0.7340     +0.7291
 Euro/Swiss                   1.0807         1.0812      -0.05%         -0.41%      +1.0821     +1.0804
 Euro/Sterling                0.8956         0.8978      -0.25%         +5.94%      +0.8990     +0.8949
 NZ                           0.6878         0.6905      -0.38%         +2.23%      +0.6918     +0.6876
 Dollar/Norway                9.0620         9.0850      -0.29%         +3.27%      +9.0940     +9.0340
 Euro/Norway                  10.7576        10.7340     +0.22%         +9.35%      +10.7892    +10.7188
 Dollar/Sweden                8.6188         8.6063      +0.23%         -7.79%      +8.6399     +8.5886
 Euro/Sweden                  10.2322        10.2088     +0.23%         -2.26%      +10.2480    +10.1959
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho in London; Editing by
Kirsten Donovan)