FOREX-Dollar slumps as bears shrug off U.S. stimulus delay

    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E
    * Stimulus doubts give dollar brief reprieve
    * Many analysts calling for long-term dollar decline
    * Year-end mood likely to keep markets subdued

    By Stanley White
    TOKYO, Dec 30 (Reuters) - The dollar slumped to multi-year
lows against many currencies on Wednesday as currency traders
looked past a new delay in U.S. stimulus cheques and maintained
bets additional financial aid was still likely.
    The greenback hit its weakest level in more than two years
against the euro, the Australian and the New Zealand dollars.
The greenback also crashed to the lowest in more than five years
against the Swiss franc and fell broadly against Asian
currencies.
    U.S. Senate Majority Leader Mitch McConnell on Tuesday
blocked immediate consideration of a measure to increase
COVID-19 relief payments to $2,000, adding another twist to
fractious negotiations over fiscal stimulus.
    The dollar has fallen steadily since U.S. President Donald
Trump signed a coronavirus aid and spending bill on Sunday,
because more stimulus for the world's largest economy reduces
demand for the perceived safety of holding the greenback.
    While the size of relief payments is still uncertain, many
analysts say the dollar is likely to resume falling next year
because President-elect Joe Biden is expected to push for even
more economic support measures.
    "Our weak dollar call remains intact as we move into 2021,"
analysts at BBH wrote in a research memo.
    "What happens to the greenback ... largely depends on how
well the United States controls the virus in 2021 as well as the
outlook for further fiscal stimulus." 
    The dollar fell to $1.2295 per euro on Wednesday
in Asia, its weakest since April 2018.
    The British pound rose to $1.3543.
    Against the Swiss franc, the dollar touched
0.8819, the weakest since January 2015.
    The dollar fell to 103.27 yen.
    Low liquidity may have exaggerated some market moves with
many investors away for year-end holidays.
    A light data calendar in Asia is also likely to leave
traders with little incentive to take out big positions.
    The dollar index against a basket of six major
currencies stood at 89.759, not far from the lowest in more than
two years.
    Last-minute infighting has cast doubt on some of the details
of the U.S. aid package, but many analysts say the U.S.
government will keep rolling out fiscal stimulus in some form
because a second wave of coronavirus infections is becoming a
big threat to the economy.
    In addition, many investors are already looking ahead to a
new government under Biden when he is sworn in on Jan. 20.
    Another negative factor for the greenback is expectations
that the U.S. Federal Reserve will keep interest rates low for
an extremely long time, many analysts say.
    Elsewhere, both the Australian dollar and the New
Zealand dollar reached their strongest levels in 2
1/2-years. The currencies are considered barometers of risk
appetite because of their ties to global commodities.
    The onshore yuan edged up to 6.5227 per dollar.
The Korean won and the Malaysian ringgit also rose
amid broad-based dollar selling.
    
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    Currency bid prices at 12:02PM (0302 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.2287        $1.2251     +0.29%         +9.60%      +1.2295     +1.2250
 Dollar/Yen                   103.2750       103.4850    -0.17%         -4.89%      +103.5800   +103.2950
 Euro/Yen                     126.89         126.86      +0.02%         +4.05%      +127.1300   +126.8600
 Dollar/Swiss                 0.8827         0.8841      -0.15%         -8.77%      +0.8842     +0.8820
 Sterling/Dollar              1.3543         1.3502      +0.32%         +2.13%      +1.3544     +1.3495
 Dollar/Canadian              1.2796         1.2814      -0.13%         -1.49%      +1.2827     +1.2797
 Aussie/Dollar                0.7641         0.7606      +0.47%         +8.91%      +0.7642     +0.7604
 NZ                           0.7171         0.7148      +0.35%         +6.60%      +0.7176     +0.7148
 Dollar/Dollar (Reporting by Stanley White; Editing by Sam Holmes and Stephen
Coates)