Editing FOREX-Dollar Decline Stalls; Yuan Pares Gain After Biden apos;s Comment...

<br>By Eimi Yamamitsu<br> <br>TOKYO, Dec 2 (Reuters) - The dollar stayed near a 2-1/2-year low on Wednesday as investors assessed the likelihood of further fiscal stimulus in the United States, while riskier currencies held onto gains as investor confidence improved.<br> <br>The Chinese yuan erased some gains in Asian afternoon trade after the New York Times reported that U.S.<br>President-elect Joe Biden will not immediately act to remove the Phase 1 trade agreement President Donald Trump signed with China.<br> <br>Against a basket of major currencies, the dollar index eased at 91.19, near the lowest level since late April 2018 it hit overnight.<br> <br>The Euro and the Kiwi steadied after an overnight jump to their 2 1/2-year highs as dollar weakened broadly on renewed hopes for a coronavirus vaccine and U.S.<br><br>fiscal stimulus.<br> <br>U.S. Treasury Secretary Steve Mnuchin and  [https://www.kynghidongduong.vn/tours/tour-du-lich-trung-quoc-ha-khau-con-minh-le-giang-shangrila-shangri-la-6-ngay.html tour lệ giang] House of Representatives Speaker Nancy Pelosi held stimulus talks for the first time since the Nov. 3 election, while a bipartisan group of senators and House members proposed $908 billion worth of coronavirus relief measures.<br> <br>Pelosi said in a statement after the talks that Mnuchin would review coronavirus relief proposals.<br> <br>U.S.<br>Senate leader Mitch McConnell said on Tuesday that Congress should include a fresh wave of coronavirus stimulus in a must-pass $1.4 trillion spending bill aimed at heading off a government shutdown in the midst of the pandemic.<br> <br>Biden told the New York Times his priority is getting a generous aid package through Congress even before he takes office in January.<br> <br>But traders were taking the reports cautiously.<br> <br>"The currency market is sceptical whether these proposals could be agreed in a swift manner, since hopes were shattered once already when a stimulus package didn´t come into fruition before the presidential election," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.<br> <br>Also weighing on the safe-haven dollar was weaker-than-expected U.S.<br><br>manufacturing activity data and speculation that the Federal Reserve will act to support the economy before vaccinations become available.<br> <br>Fed Chair Jerome Powell and Mnuchin urged Congress to provide more help for small businesses amid surging infections, on concern that a vaccine may not arrive in time to keep more companies from failing.<br> <br>The next Federal Open Market Committee policy meeting is on Dec.<br>15-16.<br> <br>Later on Wednesday, data including the U.S. ADP national employment data and EU unemployment rate are due.<br> <br>The Bank of Japan's deputy governor signalled the central bank's readiness to extend pandemic-response programmes, adding that the bank will "take additional easing steps without hesitation as needed."<br> <br>Against the Japanese yen, the greenback changed hands at 104.41.<br> <br>The euro held ground against the dollar after its strong performance overnight as it hit the highest level since May 2018.<br><br>It last fetched $1.2071.<br> <br>Analysts said the common currency could be pressured as investors grow wary that European Central Bank could act against the rapid rise.<br> <br>"The ECB might comment on the currency, but I think it would be difficult for the bank to stop the euro appreciation. It'd be hard not to favour the euro at a time when the euro zone is trade surplus and people are selling the dollar," said Mitsuo Imaizumi, chief FX strategist at Daiwa Securities.<br> <br>Sterling also remained near a three-month peak against the greenback after Times Radio said Brexit trade deal talks have entered the "tunnel" stage of negotiations.<br> <br>While the European Union's Brexit negotiator Michel Barnier is due to update the bloc on trade talks later this week, a senior British minister said on Tuesday there was still a chance of a no-trade deal Brexit.<br> <br>The pound was little changed at $1.3415.<br> <br>The risk-sensitive Aussie firmed to 0.7373 per dollar after an upbeat data showed Australia's economy [http://www.guardian.co.uk/search?q=rebounded rebounded] more strongly than expected in the third quarter.<br> <br>Reserve Bank of Australia Governor Philip Lowe called the figures "good" news, while noting there was a long way yet to full recovery.<br> <br>Across the Tasman Sea, the New Zealand dollar changed hands at $0.7068,  [https://www.kynghidongduong.vn/tours/tour-du-lich-trung-quoc-ha-khau-con-minh-le-giang-shangrila-shangri-la-6-ngay.html kynghidongduong.vn] holding steady near the highest level since April 2018 hit overnight.<br> <br>The onshore yuan last changed hands at 6.8960 per dollar .<br> <br>Bitcoin dropped around 0.7% to $18,635 after hitting a record high just under $20,000 on Tuesday.<br><br>(Reporting by Eimi Yamamitsu; Editing by Gerry Doyle and Kim Coghill)<br>