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FOREX-Dollar holds ground, more losses seen as U.S. election drags on

    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E
    * Dollar falls broadly as yields fall, equities rally
    * Currencies price in low chance of big U.S. stimulus
    * Australian dollar falls after RBA statement

    By Stanley White
    TOKYO, Nov 6 (Reuters) - The dollar steadied against many
currencies on Friday but traders say more losses are likely as a
contentious U.S. presidential election diminished hopes for
large stimulus to support the economy any time soon.
    Investors are betting that Democrat Joe Biden will become
the next president but Republicans will retain control of the
Senate, which will make it difficult for the Democrats to pass
the larger fiscal spending package they have been pushing.
    Biden maintains an edge over President Donald Trump, but a
few important states are still counting votes and Trump is
mounting legal challenges to vote counts, so there is still a
high degree of uncertainty.
    The dollar index against a basket of six major
currencies stood at 92.641, close to a two-week low.
    For the week, the dollar index was down 1.5%, on course for
its biggest drop in almost four months.
    A large decline in long-term Treasury yields due to
expectations for less fiscal spending, combined with a rally in
equities and other riskier assets, has placed the dollar under
consistent selling pressure that is likely to continue.
    "There is a green light for the resumption of dollar
selling, reflecting past declines in real interest rates," said
Ray Attrill, head of foreign exchange strategy at National
Australia Bank in Sydney.
    "There's an argument that the U.S. Federal Reserve will have
to backstop risk assets. The pandemic is still trending in the
wrong direction."
    The dollar traded at 103.46 yen on Friday, close to
an eight-month low.
    Japanese Prime Minister Yoshihide Suga has vowed to work
closely with overseas authorities to keep currency moves stable,
because a strong yen is widely viewed as a threat to Japan's
economy.
    Against the euro, the dollar traded at $1.1819
after falling 0.87% in the previous session.
    The British pound traded at $1.3127, holding onto a
hefty 1.23% gain from Thursday.
    Voting tallies from several U.S. states continued to trickle
in during the Asian session, but currencies showed little
reaction because the declaration of an outright winner could
take several more days or even weeks, some traders said.
    "Trump is threatening to take legal action in order to win
the election," Koji Sasaki, president and managing partner of
private equity firm T Capital Partners in Tokyo.
    "If this (continues), there will be a political vacuum and
anxieties about stagnation... could cause a weakening dollar and
a stronger yen, which could have a negative impact on Japanese
exporters." 
    Investors were also awaiting the release of U.S. non-farm
payrolls later on Friday, which is forecast to show a slight
slowdown in job creation.
    Worries about the U.S. economy are growing, which is a
reason to expect declines in the dollar to continue into next
year, some analysts say. The rise in new coronavirus cases to
record levels in several states could also curb economic
activity.
    The onshore yuan fell slightly to 6.6307 per
dollar but still remained close to its more than two-year high
reached on Thursday.
    Many investors expect a Biden administration will slightly
scale back Trump's trade war with China, which should benefit
the yuan.
    Elsewhere, the Australian dollar fell against the
greenback after the country's central bank said it is prepared
to expand bond purchases if needed to support the economy.

    
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    Currency bid prices at 2:34PM (0534 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.1819        $1.1828     -0.08%         +5.42%      +1.1848     +1.1796
 Dollar/Yen                   103.4650       103.5500    -0.16%         -4.82%      +103.7500   +103.3850
 Euro/Yen                     122.27         122.40      -0.11%         +0.26%      +122.6700   +122.2300
 Dollar/Swiss                 0.9036         0.9042      -0.06%         -6.61%      +0.9056     +0.9030
 Sterling/Dollar              1.3127         1.3153      -0.15%         -0.98%      +1.3156     +1.3114
 Dollar/Canadian              1.3087         1.3046      +0.28%         +0.71%      +1.3096     +1.3038
 Aussie/Dollar                0.7261         0.7285      -0.32%         +3.50%      +0.7283     +0.7249
 NZ                           0.6780         0.6774      +0.10%         +0.77%      +0.6788     +0.6756
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Volatilities 
Tokyo Forex market info from BOJ 

 (Reporting by Stanley White, Additional reporting by Junko
Fujita; Editing by Sam Holmes, Himani Sarkar and Kim Coghill)
  
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