FOREX-Dollar fades after best day in three weeks; euro touches nine-day low

    * Dollar pulls back after best day in 3 weeks
    * Pound bounces off nine-day low
    * Graphic: World FX rates in 2020

 (Adds details, updates prices; previous LONDON)
    By Chuck Mikolajczak
    NEW YORK, Oct 14 (Reuters) - The dollar index retreated on
Wednesday, a day after notching its biggest daily percentage
gain in three weeks and the euro touched a nine-day low, as
global equity markets remained cautious in light of waning hopes
for a COVID-19 vaccine or U.S. fiscal stimulus.
    The dollar jumped on Tuesday on concerns about the length of
time before a COVID-19 vaccine would be available and on
diminishing expectations a fresh fiscal stimulus package would
be agreed upon in the United States before the Nov. 3
presidential election. 
    Senate Majority Leader Mitch McConnell said on Tuesday the
Republican-led U.S. Senate would vote next week on a targeted,
$500 billion coronavirus economic aid bill of the type Democrats
already have rejected as they hold out for trillions in relief.

    "Right now the dollar is simply going back and forth on
stimulus news, and it is not going very far," said Joseph
Trevisani, senior analyst at 
    The greenback extended declines after data showed the U.S.
producer price index for final demand rose 0.4% in September,
topping the 0.2% forecast, after advancing 0.3% in August, amid
a surge in the cost of hotel and motel accommodation that led to
the first year-on-year gain since March.
    The dollar index fell 0.232%. 
    The pound fell as low as $1.2865 as hopes dimmed for a
Brexit agreement, before recovering as the European Union and
Britain are set to prolong talks past a mid-October deadline to
try to bridge persistent gaps holding up a new agreement,
according to sources and documents.
    "For the pound it is pretty much Brexit - Boris says
something good, it goes up, Boris says something bad, it goes
down. It doesn’t seem to be reacting terribly to the
coronavirus," said Trevisani. 
    Sterling was last trading at $1.3046, up 0.87% on the
    Euro zone industrial production data showed the rate of
recovery slowed sharply in August, in line with expectations.

    European nations are extending restrictions well beyond
social life to close schools, cancel surgeries and enlist
legions of student medics as overwhelmed authorities face their
nightmare scenario of a COVID-19 resurgence at the onset of
    The euro was up 0.11% to $1.17575.
    Currency bid prices at 10:33 AM (1433 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar                  $1.1757        $1.1745     +0.11%         +4.87%      +1.1769     +1.1719
 Dollar/Yen                   105.1950       105.4600    -0.27%         -3.17%      +105.5100   +105.1650
 Euro/Yen                     123.67         123.89      -0.18%         +1.41%      +123.9500   +123.5900
 Dollar/Swiss                 0.9127         0.9149      -0.24%         -5.68%      +0.9163     +0.9125
 Sterling/Dollar              1.3047         1.2937      +0.88%         -1.60%      +1.3053     +1.2865
 Dollar/Canadian              1.3140         1.3136      +0.05%         +1.16%      +1.3157     +1.3116
 Aussie/Dollar                0.7172         0.7161      +0.15%         +2.22%      +0.7191     +0.7153
 Euro/Swiss                   1.0729         1.0742      -0.12%         -1.13%      +1.0749     +1.0727
 Euro/Sterling                0.9009         0.9077      -0.75%         +6.56%      +0.9121     +0.9010
 NZ                           0.6656         0.6648      +0.12%         -1.08%      +0.6672     +0.6645
 Dollar/Norway                9.1950         9.2490      -0.62%         +4.78%      +9.2715     +9.1895
 Euro/Norway                  10.8113        10.8570     -0.42%         +9.89%      +10.8800    +10.8010
 Dollar/Sweden                8.8143         8.8295      -0.08%         -5.70%      +8.8420     +8.7961
 Euro/Sweden                  10.3624        10.3710     -0.08%         -0.99%      +10.3840    +10.3451

 (Reporting by Chuck Mikolajczak)