FOREX-Dollar steadies as trading buffeted by U.S. stimulus

    * Graphic: World FX rates in 2020

    By Eimi Yamamitsu
    TOKYO, Oct 22 (Reuters) - The U.S. dollar steadied against
most major currencies on Thursday as U.S. stimulus talks
remained the focus for markets with trading buffeted over recent
days by the extent of progress made on the potential size of the
aid package.
     The dollar index was nearly flat against a basket of
currencies at 92.801, having marked its lowest level since Sept.
2 overnight.
    On Wednesday, the dollar weakened after U.S. President
Donald Trump and House Speaker Nancy Pelosi boosted hopes an
agreement on stimulus was close, sparking demand for riskier
    ”For a while, the pattern has been that when stimulus talks
stalled, equities fell and the dollars were being bought due to
risk-averse sentiment. But with optimistic headlines like these,
the market is inclined to shift to risk-on mood and sell the
dollars,” said Daisuke Karakama, chief market economist at
Mizuho Bank. 
    But prospects remain dim for the Republican-controlled
Senate to approve any aid before the Nov. 3 election.
    Nancy Pelosi said before starting talks with Treasury
Secretary Steven Mnuchin that there was still a chance for a
deal despite resistance from Senate Republicans, though she
acknowledged it might not pass until after the election.

    Separately, Federal Reserve Governor Lael Brainard said the
biggest risk to her outlook for economic recovery was that
fiscal support from the federal government would be withdrawn
too soon.
    Analysts said the dollar was also pressured by surge in
currencies such as the sterling, which jumped to a
six-week high overnight after Britain’s chief Brexit negotiator
said talks with the European Union will resume on Thursday
    Against the greenback, the pound steadied at $1.3134 in
early Asian trade.
    The euro edged 0.11% lower against the dollar to
$1.8465, a fraction below a one-month high of $1.8805 hit on
    Traders are also awaiting the final presidential debate
between President Trump and Democratic rival Joe Biden later in
the day, with the key feature this time around being a mute
button to allow each candidate to speak uninterrupted.

    The Japanese yen was little changed at 104.68
against the greenback, having marked a four-week high overnight.
    The Australian dollar eased as E-mini futures for
the S&P 500 lost more than 0.6%; the Aussie was last
fetching 0.7105, while the kiwi fell 0.32 to 0.6634.
    Currency bid prices at {TIME:h12:mm} ({TIME:h24mm gmt} GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar                  {EUR=EBS;$BID  {EUR=EBS;$  {EUR=EBS;+PCT  {EUR=EBS;+  {EUR=EBS;+  {EUR=EBS;+
                              :4}            US_CLOSE:4  CHNG:2}%       PCTCHG_YTD  HIGH_1:4}   LOW_1:4}
                                             }                          :2}%                    
 Dollar/Yen                   {JPY=D3;BID:4  {JPY=D3;US  {JPY=D3;+PCTC  {JPY=D3;+P  {JPY=D3;+B  {JPY=D3;+L
                              }              _CLOSE:4}   HNG:2}%        CTCHG_YTD:  ID_HIGH_1:  OW_1:4}
                                                                        2}%         4}          
 Euro/Yen                     {EURJPY=;BID:  {EURJPY=;U  {EURJPY=;+PCT  {EURJPY=;+  {EURJPY=;+  {EURJPY=;+
                              2}             S_CLOSE:2}  CHNG:2}%       PCTCHG_YTD  BID_HIGH_1  LOW_1:4}
                                                                        :2}%        :4}         
 Dollar/Swiss                 {CHF=EBS;BID:  {CHF=EBS;U  {CHF=EBS;+PCT  {CHF=EBS;+  {CHF=EBS;+  {CHF=EBS;+
                              4}             S_CLOSE:4}  CHNG:2}%       PCTCHG_YTD  BID_HIGH_1  LOW_1:4}
                                                                        :2}%        :4}         
 Sterling/Dollar              {GBP=D3;BID:4  {GBP=D3;US  {GBP=D3;+PCTC  {GBP=D3;+P  {GBP=D3;+B  {GBP=D3;+L
                              }              _CLOSE:4}   HNG:2}%        CTCHG_YTD:  ID_HIGH_1:  OW_1:4}
                                                                        2}%         4}          
 Dollar/Canadian              {CAD=D3;BID:4  {CAD=D3;US  {CAD=D3;+PCTC  {CAD=D3;+P  {CAD=D3;+B  {CAD=D3;+L
                              }              _CLOSE:4}   HNG:2}%        CTCHG_YTD:  ID_HIGH_1:  OW_1:4}
                                                                        2}%         4}          
 Aussie/Dollar                {AUD=D3;BID:4  {AUD=D3;US  {AUD=D3;+PCTC  {AUD=D3;+P  {AUD=D3;+B  {AUD=D3;+L
                              }              _CLOSE:4}   HNG:2}%        CTCHG_YTD:  ID_HIGH_1:  OW_1:4}
                                                                        2}%         4}          
 NZ                           {NZD=D3;BID:4  {NZD=D3;US  {NZD=D3;+PCTC  {NZD=D3;+P  {NZD=D3;+B  {NZD=D3;+L
 Dollar/Dollar                }              _CLOSE:4}   HNG:2}%        CTCHG_YTD:  ID_HIGH_1:  OW_1:4}
                                                                        2}%         4} All spots
Tokyo spots
Europe spots 
Tokyo Forex market info from BOJ 

 (Reporting by Eimi Yamamitsu
Editing by Shri Navaratnam)