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FOREX-Dollar back in demand, set for biggest weekly surge since early April

    * Dollar index rises, yen falls against dollar 
    * Aussie and Kiwi decline against greenback
    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E

 (Updates prices, adds commentary, changes byline, previous
dateline London)
    By Sinéad Carew
    NEW YORK, Sept 25 (Reuters) - The dollar extended its gains
on Friday and was on track for its biggest weekly gain since
early April, as investors sought safety amid a slowing economic
recovery, rising coronavirus infections in Europe and
uncertainty surrounding the upcoming U.S. elections.
    While orders for key U.S.-made capital goods increased more
than expected in August, orders for durable goods - ranging from
toasters to aircraft that are meant to last three years or more
- rose 0.4% in August after jumping 11.7% in July.
    While the dollar fell slightly on Thursday, for the first
session in five, as equities rose on hopes for U.S. stimulus,
the greenback's rally resumed on Friday as worries resurfaced. 
    "Yesterday was a calmer more positive sentiment ... then
this morning's durable goods show that the pace of growth in the
United States is very uneven," said Juan Perez, senior currency
trader and strategist at Tempus Inc. 
    Along with weaker U.S. and overseas economic data and
expectations, Perez said dollar demand was also boosted by 
Washington's failure to create a stimulus package and concerns
ahead of the U.S. election. 
    Top Republicans on Thursday repudiated President Donald
Trump's refusal to commit to a peaceful transfer of power after
Trump, also a Republican, said Wednesday that he expects the
election result to end up being settled by the Supreme Court.

    "In times like that when the chaos and havoc and blurriness
of the future is so intense and so dense, that's when the dollar
is going to rise once again," said Perez. "Markets are always
going to be afraid when a strong government does not give
clarity about continuance, about stability."     
    Currency moves were closely correlated with share indexes,
which have fallen sharply this week as markets re-evaluated the
shape of a possible recovery from the pandemic.
    The dollar index, which measures the greenback against a
basket of major currencies, was last up 0.35% at 94.642
and was on track for its best weekly percentage gain since April
5th. 
    "The dollar is doing well under risk-aversion conditions and
lower asset prices – not to the same extent that we saw in
March/April but certainly enough to take notice," said Neil
Jones, senior director and head of FX sales at Mizuho.
    
    The euro was down 0.4% at $1.1625 , close to two-month lows
hit on Thursday.
    Riskier currencies fell, with Australian dollar lower 0.3%
on the day and set to end the week down around 3.6%, in its
biggest weekly decline since March. The New Zealand
dollar was down 0.15% against the greenback.
    The yen was lower against the dollar at 105.65.
    
    ========================================================
    Currency bid prices at 10:53AM (1453 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1625        $1.1672     -0.40%         +3.70%      +1.1684     +1.1615
 Dollar/Yen       JPY=        105.6500       105.4000    +0.24%         -2.94%      +105.6900   +105.2500
 Euro/Yen         EURJPY=     122.83         123.00      -0.14%         +0.72%      +123.1500   +122.6200
 Dollar/Swiss     CHF=        0.9283         0.9266      +0.18%         -4.08%      +0.9295     +0.9251
 Sterling/Dollar  GBP=        1.2708         1.2749      -0.32%         -4.17%      +1.2804     +1.2690
 Dollar/Canadian  CAD=        1.3397         1.3362      +0.26%         +3.16%      +1.3405     +1.3338
 Australian/Doll  AUD=        0.7023         0.7045      -0.31%         +0.03%      +0.7086     +0.7007
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0793         1.0813      -0.18%         -0.54%      +1.0821     +1.0793
 Euro/Sterling    EURGBP=     0.9147         0.9149      -0.02%         +8.20%      +0.9168     +0.9120
 NZ               NZD=        0.6540         0.6550      -0.15%         -2.91%      +0.6591     +0.6529
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.5765         9.4967      +0.84%         +9.09%      +9.6151     +9.4833
 Euro/Norway      EURNOK=     11.1329        11.0858     +0.42%         +13.16%     +11.1858    +11.0679
 Dollar/Sweden    SEK=        9.1203         9.0828      -0.15%         -2.42%      +9.1645     +9.0858
 Euro/Sweden      EURSEK=     10.6038        10.6195     -0.15%         +1.29%      +10.6635    +10.6070
 
    
 (Additional reporting by Elizabeth Howcroft in London,
Editing by Louise Heavens and Steve Orlofsky)
  
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