Markets & Finance News

* Dollar lower for fifth straight session (Updates to open of U.S. markets, changes dateline; previous LONDON)

The dollar slipped for a fifth straight session on Wednesday, sliding to a more than one-week low, as positive vaccine news offset the surge in coronavirus cases and tighter economic restrictions across the United States and Europe. The market showed a little more appetite for risk-taking, with gains in currencies that rise in times of improving sentiment such as sterling, the New Zealand dollar, and Norwegian crown. Pfizer announced that the final results from the late-stage trial of its COVID-19 vaccine showed it was 95% effective, giving relief to a pandemic-weary market . That followed news that Moderna Inc released preliminary data for its vaccine, showing 94.5% effectiveness. That said, the number of reported global daily deaths from the coronavirus stood at 10,816 on Tuesday, according to a Reuters tally, the highest single-day death count. The United States, the worst-affected country worldwide, has reported about 11.38 million infections and 248,574 deaths since the pandemic started. "A spike in COVID cases is generally good for the dollar and other safe-haven currencies like the yen and Swiss franc, but the positive vaccine news roughly counters that," said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York. The dollar overall is expected to weaken as global economies improve once the vaccine gets widely distributed and as the Federal Reserve stands ready to provide more easing that should further erode the value of the greenback. Fed Chair Jerome Powell said on Tuesday there was "a long way to go" to economic recovery and a retail sales report released by the U.S. Commerce Department showed spending decelerating. In mid-morning trading, the dollar index slipped 0.1% to 92.298, after dropping as low as 92.207, its lowest level since Nov. 9. Bitcoin, sometimes regarded as a safe haven, or at least a hedge against inflation, rose to more than $18,000 for the first time in nearly three years. It last stood around $17,594, down 0.4%. The euro was slightly up on the day at $1.1869 rising, despite Poland and Hungary blocking the European Union's 1.8 trillion-euro ($2.14 trillion) financial package to revive an economy depressed by the COVID-19 pandemic. Sterling, meanwhile, rose 0.3% versus the dollar to $1.3297 in the wake of a report from the Sun newspaper that Prime Minister Boris Johnson was told by British negotiators to expect a Brussels trade deal early next week, with "a possible landing zone" as soon as next Tuesday. The dollar though fell 0.3% against the yen to 103.865 , with the Japanese currency recouping much of the losses it suffered last week after Pfizer announced it had developed a working COVID-19 vaccine. China's offshore yuan surged to its highest in more than two years against the dollar on Wednesday. The greenback though recovered to trade 0.2% higher at 6.5619 amid dollar-buying by major state-owned banks in what some traders suspected was an effort to slow the Chinese currency's advance towards 6.5-per dollar. ======================================================== Currency bid prices at 10:11AM (1511 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 92.2960 92.4330 -0.13% +0.00% +92.5160 +92.2070 Euro/Dollar $1.1867 $1.1861 +0.05% +5.85% +1.1891 +1.1851 Dollar/Yen 103.8250 104.1900 -0.35% -4.41% +104.1900 +103.8250 Euro/Yen 123.19 123.57 -0.31% +1.03% +123.6300 +123.2100 Dollar/Swiss 0.9108 0.9116 -0.05% -5.84% +0.9122 +0.9098 Sterling/Dollar 1.3302 1.3250 +0.39% +0.29% +1.3305 +1.3248 Dollar/Canadian 1.3076 1.3107 -0.23% +0.66% +1.3117 +1.3056 Aussie/Dollar 0.7313 0.7300 +0.18% +4.23% +0.7328 +0.7272 Euro/Swiss 1.0807 1.0811 -0.04% -0.41% +1.0824 +1.0804 Euro/Sterling 0.8919 0.8953 -0.38% +5.50% +0.8959 +0.8921 NZ 0.6927 0.6894 +0.49% +2.96% +0.6930 +0.6877 Dollar/Dollar Dollar/Norway 9.0210 9.0700 -0.53% +2.84% +9.0890 +9.0095 Euro/Norway 10.7050 10.7464 -0.39% +8.81% +10.7790 +10.6960 Dollar/Sweden 8.5997 8.6131 -0.23% -8.00% +8.6359 +8.5803 Euro/Sweden 10.2055 10.2293 -0.23% -2.52% +10.2420 +10.1870 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Julien Ponthus in London)

* U.S. dollar dips - Citi sees possible 20% weakening in 2021

The dollar remained under pressure on Wednesday and briefly dropped to its lowest in over a week as tighter economic restrictions across the United States and Europe tested market optimism over vaccine trials.

Global shares edged higher and the dollar perked up on Wednesday as further positive COVID-19 vaccine news more than offset concerns around the stubbornly high global infection rate.

Sri Lankan shares gave up early gains to close flat on Wednesday, as losses in industrial stocks offset gains in consumer goods companies.

Global shares edged higher and the dollar slipped on Wednesday as weak U.S. retail sales and a surge of new coronavirus cases tempered market euphoria after recent COVID-19 vaccine breakthroughs.

* Says economy has recovered, but outlook uncertain (Updates with MPC comments, details, economist quote)

The Turkish lira eased on Wednesday after the imposition of tighter coronavirus restrictions, while investors looked ahead to a central bank meeting on Thursday on hopes of a sharp interest rate hike that could temper rising inflation.

Global shares were little changed and oil rose on Wednesday as weak U.S. retail sales and a surge of new coronavirus cases dampened but did not extinguish the euphoria from recent COVID-19 vaccine breakthroughs.