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FOREX-Dollar bounces off 2018 lows on economic outlook, euro profit-taking

    * Control of both Houses gives Biden scope to push agenda
    * Yuan edges lower against the dollar
    * Dollar outlook mixed
    * Graphic: World FX rates in 2021 tmsnrt.rs/2RBWI5E

 (Adds details, updates prices; changes byline, previous LONDON)
    By Chuck Mikolajczak
    NEW YORK, Jan 7 (Reuters) - The dollar rebounded from levels not seen since March 2018 to its highest
in a week on Thursday, on the potential for an economic rebound and profit-taking by investors who had
been betting on the euro. 
    The dollar index, which measures the U.S. currency against a basket of peers, rose 0.581% at
89.835 after rising as high as 89.979 with the euro down 0.45% to $1.2269.
    The dollar saw little movement on Wednesday as hundreds of President Donald Trump's supporters stormed
the U.S. Capitol on Wednesday in a bid to overturn his election defeat, battling police in the hallways
and delaying the certification of Democratic President-elect Joe Biden's victory for hours.
    But the certification of Biden's victory has raised expectations for more fiscal stimulus measures to
bolster the economic outlook and pushed longer-dated bond yields higher, with the benchmark 10-year
 climbing above 1% on Wednesday for the first time since March.
    "Once the rates start to move, as they did yesterday, it wasn’t a big move but it was in the right
direction, that is the direction of the future," said Joseph Trevisani, senior analyst at FXStreet.com.  
    "It’s debatable on how long it is going to take for the vaccines to work and hopefully end the
pandemic but once that happens you are going to get a much stronger U.S. recovery and that will lead to a
stronger dollar."  
    Still, many analysts maintain a weaker long-term outlook for the dollar, and see the recent advance as
the unwinding of bearish bets against the greenback, after it fell nearly 7% in 2020 and as much as 0.9%
in the new year. 
    The yuan edged lower at 6.47 per dollar after Chinese authorities signaled a desire for a
slower pace of gains.
    The remarks by the State Administration of Foreign Exchange (SAFE) on Wednesday follow an advance of
around 10% on the greenback since last May as China's economic rebound has led the world's pandemic
recovery. 
    Sterling was last trading at $1.3562, down 0.33% on the day as it continued to meander below
the almost three-year high of $1.3703 touched on Monday.
    Bitcoin marked a fresh all-time high as it approached the $40,000 mark on Thursday, and was
last up 6.56% at $39,266.00.
    
    ========================================================
    Currency bid prices at 11:07AM (1607 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Dollar index                 89.8350        89.3250     +0.58%         +0.00%      +89.9790    +89.2940
 Euro/Dollar                  $1.2270        $1.2328     -0.47%         +0.42%      +$1.2345    +$1.2245
 Dollar/Yen                   103.8250       103.0400    +0.84%         +0.60%      +103.9500   +103.1000
 Euro/Yen                     127.38         127.00      +0.30%         +0.36%      +127.4500   +126.9200
 Dollar/Swiss                 0.8845         0.8781      +0.73%         -0.02%      +0.8861     +0.8778
 Sterling/Dollar              $1.3560        $1.3610     -0.37%         -0.75%      +$1.3632    +$1.3537
 Dollar/Canadian              1.2713         1.2680      +0.28%         -0.15%      +1.2733     +1.2665
 Aussie/Dollar                $0.7753        $0.7806     -0.67%         +0.80%      +$0.7817    +$0.7726
 Euro/Swiss                   1.0852         1.0826      +0.24%         +0.40%      +1.0862     +1.0826
 Euro/Sterling                0.9045         0.9055      -0.11%         +1.21%      +0.9077     +0.9016
 NZ                           $0.7246        $0.7295     -0.70%         +0.88%      +$0.7304    +$0.7226
 Dollar/Dollar                                                                                  
 Dollar/Norway                8.4315         8.4165      +0.34%         -1.65%      +8.4715     +8.4065
 Euro/Norway                  10.3485        10.3680     -0.19%         -1.13%      +10.3785    +10.3325
 Dollar/Sweden                8.1976         8.1645      +0.02%         +0.01%      +8.2319     +8.1577
 Euro/Sweden                  10.0585        10.0565     +0.02%         -0.18%      +10.0905    +10.0505
 


 (Reporting by Chuck Mikolajczak
Editing by Marguerita Choy)
  
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