Dollar plumbs fresh 2-1/2 year lows on continued risk sentiment

The greenback fell to multi-year lows against majority of its peers on Wednesday in thin year-end trading on continued risk appetite due on optimism of more U.S. fiscal support and as Covid-19 vaccines start to get rolled out.  
  
Versus the Japanese yen, dollar met renewed selling 103.60 in Australia and dropped to 103.27 in Asia. The pair continued to ratchet lower in Europe on usd's renewed weakness and fell to session lows of 102.97 in New York before staging a short-covering rebound to 103.35.  
  
The single currency jumped in Asia above Tuesday's high at 1.2275 to 1.2294 before retreating sharply to 1.2253 in early European morning on profit-taking together with cross-selling of euro especially vs sterling. However, the pair then found renewed buying there rallied to a 33-month peak at 1.2309 in New York morning on usd's broad-based weakness before retreating to 1.2277. Euro last traded at 1.2295 near the close.  
  
The British pound also gained to 1.3556 in Asia and then found renewed buying at 1.3529 at European open and rallied to 1.3615 on usd's broad-based weakness in Europe before retreating to 1.3573 in New York morning on profit-taking. Cable later rose marginally above previous December's 2-1/2 year high of 1.3625 to 1.3626 on usd's weakness.  
  
In other news, Reuters reported British lawmakers on Wednesday voted in favour of legislation implementing the post-Brexit trade deal agreed with the European Union last week.  
  
Lawmakers voted 521 to 73 to progress the bill to its final stages in the lower house of parliament. A second vote, due shortly, will confirm its approval by the lower house before it moves to the upper house later on Wednesday.  
  
Data to be released on Thursday:  
  
Japan market holiday, China NBS non-manufacturing PMI, NBS manufacturing PMI and U.S. initial jobless claims, continued jobless claims.