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FOREX-Dollar gains on hold as risks keep speculators at bay

 (Updates prices)
    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E
    * Dollar supported as safe-harbour currency
    * Investors nervous as U.S. election approaches
    * Yuan decline put on hold after central bank fixing
    * Euro and pound hit by virus and trade talk concerns

    By Stanley White
    TOKYO, Oct 14 (Reuters) - The U.S. dollar held on to gains
against most currencies on Wednesday as renewed questions about
a coronavirus vaccine and lack of an agreement on additional
U.S. fiscal stimulus prompted a shift to safer assets.
    The yuan was little changed versus the dollar after the
central bank's daily fixing of the yuan's mid-point was largely
in line with estimates, suggesting authorities have paused their
attempts to rein in the currency.
    The euro and British pound are likely to extend declines,
analysts said, as a return of restrictions on economic activity
in Europe and Britain to battle a second wave of coronavirus
infections unnerves investors.
    Currency moves, however, are likely to be subdued as the
U.S. presidential election looms on Nov. 3, but analysts said
sentiment is leaning against riskier bets, which should support
the dollar in the coming days.
    "Many factors are pointing to more upside for the dollar,"
said Masafumi Yamamoto, chief currency strategist at Mizuho
Securities.
    "U.S. stimulus may not come until after the election. The
People's Bank of China is halting the yuan's rise. There's no
reason to buy the euro, and there are a lot of euro longs that
need to be unwound."
    The dollar last stood at $1.1743 per euro, holding
on to a 0.6% gain from the previous session.
    The pound traded at $1.2926, nursing a 1% loss from
Tuesday.
    Sterling also took a hit due to worries about little
progress in trade talks between Britain and the European Union
and the chance the Bank of England will adopt negative interest
rates.
    Risk appetite has weakened after Johnson & Johnson
said on Tuesday it is pausing a clinical trial of a coronavirus
vaccine and Eli Lilly and Co also said it paused a
coronavirus antibody treatment.
    Hopes are fading that U.S. Republicans and Democrats will
reach a compromise on a new round of fiscal stimulus, which
would deal a blow to the economic outlook.
    Both developments are supporting the dollar, traders said.
    The onshore yuan last traded at 6.7408 per
dollar. On Monday the yuan posted its biggest daily fall in
seven months after the central bank cut foreign exchange forward
reserve requirements, which makes it cheaper to short the
currency.
    The Australian dollar was little changed but is
likely to add to its 1% decline on Tuesday due to concern about
a row with Beijing over coal imports, traders said.
    Across the Tasman Sea, the New Zealand dollar edged
higher against its U.S. counterpart.
    Reserve Bank of New Zealand Assistant Governor Christian
Hawkesby said on Wednesday that some economic data have
surprised to the upside.
    But he also said the central bank's discussion of negative
interest rates is "not a game of bluff".
========================================================
    Currency bid prices at 2:19PM (0519 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.1741        $1.1745     -0.03%         +4.72%      +1.1752     +1.1736
 Dollar/Yen                   105.4300       105.4600    -0.05%         -2.96%      +105.5000   +105.3350
 Euro/Yen                     123.79         123.89      -0.08%         +1.51%      +123.9500   +123.6500
 Dollar/Swiss                 0.9150         0.9149      +0.03%         -5.43%      +0.9155     +0.9147
 Sterling/Dollar              1.2914         1.2937      -0.19%         -2.65%      +1.2943     +1.2911
 Dollar/Canadian              1.3139         1.3136      +0.03%         +1.15%      +1.3157     +1.3134
 Aussie/Dollar                0.7167         0.7161      +0.08%         +2.14%      +0.7174     +0.7153
 NZ                           0.6657         0.6648      +0.17%         -1.04%      +0.6665     +0.6645
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Volatilities 
Tokyo Forex market info from BOJ 

 (Reporting by Stanley White; Editing by Christopher Cushing and
Muralikumar Anantharaman)
  
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