for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

FOREX-Dollar slides as U.S. stimulus impasse weighs

    * U.S. CPI higher than expected, briefly lifts dollar
    * Markets focus on stimulus package
    * Dollar hits 3-week high vs yen
    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E

 (Adds new comment, U.S. data, FX table, updates prices, changes byline, previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Aug 12 (Reuters) - The dollar fell from a one-week high on Wednesday, as political wrangling
over a stimulus package for the U.S. economy halted its recent rebound.
    The greenback, however, rose to a three-week peak against the yen, climbing for a fourth straight
session. The dollar/yen pair typically moves in tandem with U.S. Treasury yields, with the 10-year
advancing to a one-month high.
    Stronger-than-expected U.S. CPI numbers, meanwhile, briefly lifted the dollar against a basket of
currencies.
    Data showed the U.S. consumer price index rose 0.6% last month after rebounding 0.6% in June. 
Excluding the volatile food and energy components, the CPI jumped 0.6% last month. That was the largest
gain since January 1991 and followed a 0.2% rise in June.
    But the market's focus was on the U.S. stimulus package. Investors are watching for signs a political
impasse in Washington over a further rescue package for the pandemic-hit economy can be overcome. 
    U.S. Treasury Secretary Steven Mnuchin said on Wednesday that the White House and top Democrats in
Congress may not be able to reach a deal on coronavirus aid, in the fifth day without talks on the
stalemate blocking relief to tens of millions of Americans. nL1N2FE0ND
    "Over the longer-term, the fact that there is no stimulus package is a good thing for the dollar. If
we're going to print another $3.5 trillion, that's bad for the dollar," said Ronald Simpson, managing
director, global currency analysis at Action Economics in Florida.
    But he added that the fact there's a stalemate in negotiations is a negative for the dollar in the
short-term.
    In mid-morning trading, the dollar index, which has held above a two-year low hit last Thursday, was
down 0.3% against a basket of currencies at 93.390, after shedding gains made in Asian trading.
    "If there is no movement in the negotiations soon, the Fed's concerns are quite likely to have an
impact on the dollar sooner or later," FX analysts at Commerzbank said in a note.
    Against the yen, the dollar rose 0.3% to 106.77 yen.
    Improved U.S. debt yields have pressured the yen by luring investment from zero-yielding Japan.
    The euro was up 0.5% at $1.1793.
    Sterling was broadly flat, despite data showing the British economy had entered a deep
recession, as signs of a recovery in June provided some support for the currency.    
    The New Zealand dollar was flat at US$0.6576, after the country's central bank held rates but
surprised markets by extending its bond-buying programme and putting slightly more emphasis on the
possibility of negative rates.
    
    ========================================================
    Currency bid prices at 9:53AM (1353 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1790        $1.1739     +0.43%         +5.17%      +1.1799     +1.1712
 Dollar/Yen       JPY=        106.7200       106.4800    +0.23%         -1.97%      +107.0100   +106.4500
 Euro/Yen         EURJPY=     125.84         125.00      +0.67%         +3.19%      +126.0500   +124.9600
 Dollar/Swiss     CHF=        0.9113         0.9167      -0.59%         -5.84%      +0.9198     +0.9110
 Sterling/Dollar  GBP=        1.3040         1.3048      -0.06%         -1.65%      +1.3067     +1.3006
 Dollar/Canadian  CAD=        1.3267         1.3300      -0.25%         +2.16%      +1.3346     +1.3258
 Australian/Doll  AUD=        0.7154         0.7142      +0.17%         +1.89%      +0.7164     +0.7110
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0746         1.0762      -0.15%         -0.98%      +1.0786     +1.0746
 Euro/Sterling    EURGBP=     0.9040         0.8996      +0.49%         +6.93%      +0.9049     +0.8989
 NZ               NZD=        0.6573         0.6576      -0.05%         -2.42%      +0.6582     +0.6528
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.9401         9.0138      -0.82%         +1.84%      +9.0499     +8.9310
 Euro/Norway      EURNOK=     10.5430        10.5760     -0.31%         +7.17%      +10.6038    +10.5378
 Dollar/Sweden    SEK=        8.6974         8.7505      -0.34%         -6.95%      +8.7903     +8.6859
 Euro/Sweden      EURSEK=     10.2565        10.2913     -0.34%         -2.03%      +10.2995    +10.2440
 
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Iain Withers in London; Editing by
Bernadette Baum)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up