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FOREX-Dollar rallies on stronger risk appetite, bitcoin tops $15,000
December 7, 2017 / 3:50 PM / 6 days ago

FOREX-Dollar rallies on stronger risk appetite, bitcoin tops $15,000

    * Dollar/yen sheds losses as equities rebound
    * Underlying optimism on US tax reform supports dollar
    * Bitcoin hits record high of $14,870

 (Updates prices, adds comment, changes byline, dateline from 
LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Dec 7 (Reuters) - The dollar rose to a two-week
high against a basket of currencies on Thursday, recovering
losses against the yen, on stronger risk appetite across markets
and on optimism the United States will successfully push through
a tax reform program. 
    The greenback slipped against the safe-haven yen on
Wednesday after U.S. President Donald Trump said he would
recognize Jerusalem as the capital of Israel, a move that
imperiled Middle East peace efforts and provoked widespread
condemnation.
    But as global stock prices edged higher on Thursday after
three days of losses, investors bought back the dollar, which
gained 0.4 percent on the day at 112.72 yen. 
    Markets are now focused on Friday's U.S. non-farm payrolls
report, with investors looking at 200,000 new jobs for November,
according to a Reuters poll.
    "Tomorrow's jobs report will play a significant factor in
keeping the (dollar) rally alive and heightening hopes for an
early 2018 rate hike," said Lennon Sweeting, chief market
strategist at XE in Toronto.
    Against a basket of currencies, the dollar hit a two-week
high of 93.745.  It was last up 0.1 percent at 93.696.
    U.S. Senate Republicans agreed to talks with the House of
Representatives on sweeping tax legislation on Wednesday, amid
early signs lawmakers could bridge their differences and agree
on a final bill ahead of a self-imposed Dec. 22 deadline.
    
    "Passage of U.S. tax reform is the main upside risk to
economic growth, with far-reaching effects," wrote BofA Merrill
Lynch analysts in a 2018 outlook. 
    But although most investors see the tax reform as a
pro-growth policy that should support the dollar, not all
analysts agree it would be straightforwardly dollar-positive. 
    "The corporate tax reform has the potential to have a
significantly positive effect on the greenback, but due to other
parts of the reform - those that are aimed at preventing tax
base erosion," wrote Commerzbank currency strategists in a note
to clients.
    The move higher in dollar/yen came, meanwhile, amid a surge
in Tokyo shares, which had slumped the previous day on Middle
East concerns.
    But considering the Nikkei's gains - the index was
up almost 1.5 percent - the dollar's rise versus the yen
appeared limited.
    The euro slipped to a two-week low of $1.1776 against
a stronger dollar. It was last slightly down on the day at
$1.1787.
    Bitcoin soared to a record high of $15,000 on the Bitstamp
exchange, continuing a surge from less than $1,000 at the
beginning of the year. 
    
    ========================================================
    Currency bid prices at 10:36AM (1536 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1790        $1.1795     -0.04%         +12.15%     +1.1809     +1.1776
 Dollar/Yen       JPY=        112.6600       112.2800    +0.34%         -3.60%      +112.7900   +112.2300
 Euro/Yen         EURJPY=     132.83         132.44      +0.29%         +7.87%      +132.9500   +132.4100
 Dollar/Swiss     CHF=        0.9919         0.9897      +0.22%         -2.54%      +0.9941     +0.9884
 Sterling/Dollar  GBP=        1.3406         1.3392      +0.10%         +8.67%      +1.3427     +1.3321
 Dollar/Canadian  CAD=        1.2855         1.2788      +0.52%         -4.28%      +1.2867     +1.2785
 Australian/Doll  AUD=        0.7520         0.7563      -0.57%         +4.23%      +0.7569     +0.7515
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1696         1.1675      +0.18%         +9.14%      +1.1707     +1.1669
 Euro/Sterling    EURGBP=     0.8792         0.8805      -0.15%         +3.22%      +0.8849     +0.8782
 NZ Dollar/Dolar  NZD=        0.6838         0.6881      -0.62%         -1.48%      +0.6888     +0.6830
 Dollar/Norway    NOK=        8.2819         8.2694      +0.15%         -4.11%      +8.3072     +8.2650
 Euro/Norway      EURNOK=     9.7651         9.7545      +0.11%         +7.48%      +9.7958     +9.7441
 Dollar/Sweden    SEK=        8.4583         8.4327      +0.25%         -7.13%      +8.4689     +8.4222
 Euro/Sweden      EURSEK=     9.9732         9.9479      +0.25%         +4.11%      +9.9895     +9.9367
 
    
   
All spots FX= 
Tokyo spots AFX= 
Europe spots EFX= 
Volatilities FXVOL= 
Tokyo Forex market info from BOJ TKYFX World central bank news
CEN
Economic Forecasts... ECON   Official rates...INT/RATE
Forex Diary.......MI/DIARY   Top events........M/DIARY
Diaries...........DIARY Diaries Index........IND/DIARY
Press Digests.....PRESS Polls on G7 economies..SURVEY/
European markets......MARKETS/))

    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Jemima Kelly in London; Editing by Susan Thomas)
  

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