(Corrects bullet point and third paragraph to show yuan was
biggest mover among major currencies)
* Chinese yuan biggest mover among major currencies, at
* Aussie dollar hits strongest levels since end-September
* Scandinavian currencies up to multi-week highs
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
LONDON, Nov 9 (Reuters) - The dollar stabilised on Monday
after tumbling to a 10-week low in the wake of Joe Biden's
election as U.S. president with euro/dollar - the most traded
currency pair in the world - holding below $1.19 and the
Japanese yen remaining close to an eight month high.
Scandinavian currencies and the Australian dollar - all very
sensitive to international trade developments and investors'
risk appetite - were stronger.
The Chinese yuan was the biggest mover among major
currencies, having struck a 28-month peak of 6.5501, and last
trading up 0.6% at 6.5545.
The Norwegian crown was not far behind, rising by 0.5%
against the dollar to 9.1135, after hitting a
seven-week high of 9.1020. The Swedish crown was also up by 0.4%
at 8.6160, after reaching a 10-week high of 8.6100
"It's classic risk preference, risk-on, higher asset prices
across the board - stocks, commodities - and it's going to the
foreign exchange market," said Neil Jones, European head of
hedge fund sales at Mizuho.
"The U.S. dollar, as one would expect, is a safe-haven
currency and still the world leader in terms of outperformance
in times of risk aversion and so one would expect it to be on
the backfoot in times of risk preference," Jones said.
The market may be a little reluctant to take euro higher, he
The Aussie dollar rose 0.4% at 0.7286 versus its
U.S. counterpart, having hit earlier 0.7301, its highest since
The euro was last trading at $1.1884, flat on the
day, after rising to a two-month high of $1.1899 in the Asian
German exports rose by more than expected in September, and
foreign trade gave Europe's largest economy a boost going into
the fourth quarter as it struggles to avoid slipping into a
double dip contraction.
The U.S. dollar hit earlier a 10-week low as investors
heralded Biden's election win by buying trade-exposed currencies
on expectations that a calmer White House could boost world
commerce and that monetary policy will remain easy.
Biden crossed the threshold of the 270 electoral college
votes required for victory on Saturday by winning the
battleground state of Pennsylvania. Republicans appear to have
retained control of the Senate, though the final makeup may not
be clear until runoff votes in Georgia in January.
The U.S. dollar changed hands at 103.5 Japanese yen
, up 0.2% on the day, although the yen was close to its
strongest since March.
The U.S. dollar index - which compares the greenback against
a basket of currencies - was steady at 92.21, after dropping to
a 10-week low of 92.12. Sterling hit its highest
in more than two months.
"The (U.S. election) outcome is ideal from a market point of
view," said CMC Markets' chief strategist in Sydney, Michael
"Neither party controls the Congress, so both trade wars and
higher taxes are largely off the agenda."
The prospect of more gridlock also means that expectations
for a massive U.S. fiscal stimulus package have been lowered,
which has sent bond yields down in anticipation of less
borrowing and more quantitative easing from the Federal Reserve.
Selling of the U.S. dollar was held in check by underlying
virus worries and because Donald Trump, the first incumbent to
lose a re-election bid in 28 years, has made no sign of
conceding while fighting legal battles to overturn the result.
Traders are also wary of fresh lockdowns as coronavirus
cases surge, with the global tally of infections topping 50
million on Sunday as cases in the United States surpassed 10
Europe's fiscal and monetary responses to a second wave of
coronavirus infections, which have already prompted new
restrictions on everyday life, will be in focus when European
Central Bank President Christine Lagarde speaks on Thursday.
(Reporting by Olga Cotaga; Additional reporting by Tom
Westbrook in Sydney; Editing by Toby Chopra)