FOREX-Dollar dips as stimulus hopes boosts risk sentiment

    * Graphic: World FX rates in 2020

 (Adds details, updates prices; previous LONDON)
    By Karen Brettell
    NEW YORK, Oct 5 (Reuters) - The safe-haven U.S. dollar dipped on Monday and riskier currencies
outperformed as risk appetite improved on optimism that lawmakers in Washington will reach a deal for new
stimulus to blunt the economic impact of the coronavirus.
    Stocks opened higher on Monday on the stimulus hopes and as doctors said that U.S. President Donald
Trump could be discharged from the hospital where he is being treated for COVID-19.
    “There is definitely some more optimism around fiscal stimulus coming down the pike,” said Erik
Nelson, a macro strategist at Wells Fargo in New York.
    U.S. House Speaker Nancy Pelosi said on Sunday progress was being made on coronavirus relief
    Failure to reach a deal, however, would likely be positive for the dollar, which on Monday fell 0.41%
against a basket of major currencies.
    “We think that the prospects for stimulus before the election are still very low,” Nelson said. “We’re
of the view that we should fade this dollar weakness we’re seeing today, and in particular against some of
these higher risk currencies like the Norwegian krone or the Australian dollar.”
    The euro gained 0.57% to $1.1783, the highest since Sept. 21.
    The Australian dollar rose 0.35% to $0.7187 and the greenback dipped 0.76% to 9.2296 krone
    Trump's COVID-19 diagnosis is adding an extra layer of uncertainty to how the U.S. Nov. 3 presidential
election will play out, and what it could mean for the greenback.
    "There isn’t a clear consensus on how the dollar should trade on this degree of political uncertainty
in the U.S.," said Jane Foley, senior FX strategist at Rabobank.
    Trump could be discharged from the hospital where he is being treated for COVID-19 as soon as Monday,
according to his doctors, although his condition remained unclear and outside experts warned it could be
    The U.S. Federal Reserve will release minutes from its September meeting on Wednesday and the European
Central Bank will release its latest meeting minutes on Thursday.
    Sterling gained 0.43% to $1.2986.
    British Prime Minister Boris Johnson and the head of the EU's executive, Ursula von der Leyen, agreed
in a phone call on Saturday to step up Brexit talks to close "significant gaps" barring a new trade
    Currency bid prices at 9:38AM (1338 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1783        $1.1716     +0.57%         +5.11%      +1.1786     +1.1708
 Dollar/Yen       JPY=        105.5500       105.3300    +0.21%         -3.04%      +105.6700   +105.3000
 Euro/Yen         EURJPY=     124.41         123.39      +0.83%         +2.02%      +124.4200   +123.3700
 Dollar/Swiss     CHF=        0.9147         0.9209      -0.67%         -5.49%      +0.9207     +0.9149
 Sterling/Dollar  GBP=        1.2986         1.2931      +0.43%         -2.06%      +1.2987     +1.2901
 Dollar/Canadian  CAD=        1.3263         1.3307      -0.33%         +2.13%      +1.3303     +1.3260
 Australian/Doll  AUD=        0.7187         0.7162      +0.35%         +2.36%      +0.7191     +0.7157
 Euro/Swiss       EURCHF=     1.0779         1.0781      -0.02%         -0.67%      +1.0787     +1.0736
 Euro/Sterling    EURGBP=     0.9073         0.9053      +0.22%         +7.32%      +0.9089     +0.9053
 NZ               NZD=        0.6645         0.6635      +0.15%         -1.35%      +0.6654     +0.6631
 Dollar/Norway    NOK=        9.2296         9.3000      -0.76%         +5.14%      +9.3359     +9.2244
 Euro/Norway      EURNOK=     10.8770        10.9200     -0.39%         +10.57%     +10.9392    +10.8586
 Dollar/Sweden    SEK=        8.8816         8.9396      +0.08%         -4.98%      +8.9397     +8.8843
 Euro/Sweden      EURSEK=     10.4686        10.4600     +0.08%         -0.01%      +10.4865    +10.4470

 (Additional reporting by Elizabeth Howcroft in London; Editing by Bernadette Baum)