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FOREX-Dollar drifts downward as investors cling to stimulus hopes

    * Dollar, yen sold this week as stimulus hopes boost mood
    * Stimulus seen coming regardless of U.S. election result
    * 10% gain in oil prices this week lifts oil exporters'
currencies
    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E

    By Tom Westbrook
    SINGAPORE, Oct 9 (Reuters) - The dollar drifted toward a
second consecutive weekly loss on Friday, as higher commodity
prices and persistent hopes for U.S. stimulus supported investor
sentiment and riskier currencies.
    Talks have resumed between U.S. House Speaker Nancy Pelosi
and Treasury Secretary Steven Mnuchin over coronavirus aid
plans, two days after President Donald Trump ended them.

    Limited progress kept dollar losses and other majors' gains
modest overnight, but the dollar eased 0.06% against a basket of
currencies and it is down 0.3% for the week.
    The prospect of stimulus to support recovery in the world's
biggest economy has weighed on the dollar in the short-term by
improving investors' mood and their willingness to buy riskier
assets such as stocks and commodity currencies.
    Investors are also regarding improving chances of a Joe
Biden presidency as increasing the likelihood of stimulus, since
Democrats are pressing for the largest spending package.
    "Market participants are travelling with the idea that a new
round of U.S. fiscal stimulus is coming regardless, the
uncertainty is more around whether it will happen before the
election and how big it will be," said Rodrigo Catril, senior FX
strategist at National Australia Bank in Sydney.
    "Investor confidence is growing that Biden will win the
Presidential election by a clear margin, reducing the risk that
Trump disputes the result."
    The risk-sensitive Australian dollar rose 0.4%
overnight and was steady early in the Asia session on Friday. It
is flat for the week, despite analysts interpreting a Tuesday
central bank statement as a signal of monetary easing to come.
    The New Zealand dollar has mostly recouped Thursday
losses made after another dovish signal from the Reserve Bank of
New Zealand and was steady at $0.6586 on Friday.
    The safe-haven Japanese yen has been sold with the
upbeat mood and held steady just above a three-week low on
Friday at 106.02 per dollar. It is down almost 0.7% this week.
    The euro was steady at $1.1763 and sterling
was flat overnight and has held firm this week as prospects for
a Brexit deal have appeared to improve. It was last at $1.2937.
    Elsewhere, a 10% surge in oil prices this week, on optimism
about stimulus and supply disruptions owing to a storm in the
Gulf of Mexico and strike in Norway, has boosted oil-linked
currencies.
    The Canadian dollar is set for its best weekly rise
in more than two months, adding 0.9% to C$1.3191 per dollar. The
Russian rouble has also gained about 1% for the week.
    China's equity, commodity, currency and bond markets resume
trade today after the Mid-Autumn holidays, and traders expect a
jump in the onshore yuan to catch up with offshore gains.
    "USD/CNY will move closer to USD/CNH's current level of
6.74," said Commonwealth Bank of Australia analyst Kim Mundy.
    The yuan last stood at 6.7355 in offshore trade. The
midpoint of its onshore trading band is fixed at 0115
GMT and trade begins a quarter of an hour later.
========================================================
    Currency bid prices at 8:13AM (013 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.1763        $1.1761     +0.02%         +4.92%      +1.1767     +1.1760
 Dollar/Yen                   105.9750       106.0300    -0.01%         -2.39%      +106.0350   +106.0200
 Euro/Yen                     124.66         124.69      -0.02%         +2.22%      +124.7600   +124.6700
 Dollar/Swiss                 0.9170         0.9170      -0.02%         -5.26%      +0.9171     +0.9168
 Sterling/Dollar              1.2936         1.2933      +0.03%         -2.46%      +1.2939     +1.2930
 Dollar/Canadian              1.3192         1.3197      -0.04%         +1.55%      +1.3198     +1.3191
 Aussie/Dollar                0.7172         0.7168      +0.05%         +2.21%      +0.7176     +0.7168
 NZ                           0.6588         0.6582      +0.11%         -2.08%      +0.6590     +0.6584
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Volatilities 
Tokyo Forex market info from BOJ 

 (Reporting by Tom Westbrook; editing by Richard Pullin)
  
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