News: FOREX-Euro hits highest level in over 4 months on EU recovery fund expectations

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    • EU leaders in fourth day of negotiations on recovery package
    • U.S. dollar index touches 6-week low
    • Trump signs off on plan to seek $1 trillion more in virus relief
    • Graphic: World FX rates in 2020

    (Updates to mid-afternoon, changes byline)

    The euro climbed to its highest in more than four months against the dollar on Monday on hopes for an imminent agreement on a recovery fund for European Union economies hit by the COVID-19 pandemic.

    The fund is expected to total around 750 billion euros ($857.93 billion), of which 390 billion euros could be offered as grants.

    EU Council President Charles Michel said he was confident his new proposal to the 27 leaders, which included 390 billion euros of grants and 360 billion euros of loans, a document showed, could be the basis for a deal many say is critical to dispel doubts about the bloc's very future. [nL5N; Editing by Richard Chang2ER21R]

    "It is the main story right now and there are signs of progress and that has been very positive for risk appetite and that is why we are seeing the euro kind of remain near its recent highs," said Edward Moya, senior market analyst at Oanda in New York.

    Positive news about a potential COVID-19 vaccine from a trio of early trials, including an experimental coronavirus vaccine being developed by AstraZeneca and Oxford University also added to overall market optimism and lifted currencies that thrive in times of heightened risk appetite, such as the Australian and New Zealand dollars.

    In afternoon trading, the euro was last up 0.12% at $1.1441, after hitting a more than four-month high of $1.14675 EUR=EBS .

    Analysts said the smaller the amount of grants from the EU fund, the more the euro would fall. The U.S. dollar index USD= fell 0.1% to 95.826 after sliding to a six-week low hit earlier in the session.

    U.S. President Donald Trump signed off on an effort to seek an additional $1 trillion in coronavirus economic relief, Treasury Secretary Steve Mnuchin said on Monday, as Republicans laid out their initial proposal for talks with Democrats.

    Still, the U.S. Congress is bracing for a battle on the proposed stimulus bill that could boost safe-haven bids for the dollar.

    The dollar rose 0.29% versus the Japanese yen to 107.30 JPY=EBS and was up 0.1% against the Swiss franc to 0.9393 franc CHF=EBS .

    The Australian and New Zealand dollars, however, gained against the greenback to US$0.7011 AUD=D3 and US$0.6571 NZD=D3 .

    	Currency bid prices at 3:02PM (1902 GMT) 
     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
     Euro/Dollar	  EUR=		$1.1439		$1.1426	 +0.11%		 +2.04%	  +1.1467	 +1.1403 
     Dollar/Yen	   JPY=		107.3000	   106.9900	+0.29%		 -1.43%	  +107.5200   +107.0200 
     Euro/Yen		 EURJPY=	 122.75		 122.30	  +0.37%		 +0.66%	  +122.9700   +122.1900 
     Dollar/Swiss	 CHF=		0.9392		 0.9384	  +0.09%		 -2.96%	  +0.9410	 +0.9374 
     Sterling/Dollar  GBP=		1.2662		 1.2565	  +0.77%		 -4.50%	  +1.2665	 +1.2519 
     Dollar/Canadian  CAD=		1.3534		 1.3576	  -0.31%		 +4.22%	  +1.3600	 +1.3525 
     Australian/Doll  AUD=		0.7011		 0.6995	  +0.23%		 -0.14%	  +0.7016	 +0.6974 
     Euro/Swiss	   EURCHF=	 1.0745		 1.0723	  +0.21%		 -0.99%	  +1.0776	 +1.0721 
     Euro/Sterling	EURGBP=	 0.9033		 0.9088	  -0.61%		 +6.85%	  +0.9138	 +0.9032 
     NZ			   NZD=		0.6571		 0.6556	  +0.23%		 -2.45%	  +0.6573	 +0.6540 
     Dollar/Norway	NOK=		9.2321		 9.2928	  -0.65%		 +5.17%	  +9.3228	 +9.2311 
     Euro/Norway	  EURNOK=	 10.5622		10.6240	 -0.58%		 +7.36%	  +10.6353	+10.5567 
     Dollar/Sweden	SEK=		8.9747		 9.0334	  -0.58%		 -3.99%	  +9.0640	 +8.9734 
     Euro/Sweden	  EURSEK=	 10.2683		10.3285	 -0.58%		 -1.92%	  +10.3395	+10.2690 
    Euro jumps to 4-month high 
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