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FOREX-Dollar falters as U.S. stimulus stalemate persists

    * Dollar index falls to one-week low
    * Back and forth on U.S. aid package weighs on dollar
    * U.S. jobless claims better than expected
    * Risk-on sentiment, equity rally dollar bearish - analysts
    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E

 (Adds new comment, U.S. data, FX table, updates prices, changes byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Aug 13 (Reuters) - The dollar fell to its lowest in a week against a basket of currencies on
Thursday, pressured as a safe haven by overall equity market resilience as well as the impasse over
additional stimulus for the U.S. economy to cope with the virus pandemic.
    After losing 10% of its value from a peak in March, the  dollar index has been bouncing around its
lowest levels in more than two years since late July.
    On Thursday, it traded 0.3% lower at 93.079, led by losses versus the euro. The single European
currency was up 0.5% at $1.1838.    
    At the same time, the S&P 500 remained within striking distance of a record high, while the
Nasdaq rose.
    Investors remained focused on the stimulus package talks, which broke down last week.
    Funding for the U.S. Postal Service and to shore up election infrastructure became a major sticking
point in congressional talks on coronavirus relief, as President Donald Trump on Thursday vowed to block
any money to facilitate mail-in voting.
    On Wednesday, Trump accused congressional Democrats of not wanting to negotiate over a U.S.
coronavirus aid package as Republican and Democratic negotiators traded blame for a five-day lapse in
talks over relief legislation.
    "The longer wait for Washington to deliver another round of pandemic relief has caused dollar-negative
clouds to gather over the economy," said Joe Manimbo, senior market analyst, at Western Union Business
Solutions in Washington.
    Analysts also noted recent equity market resilience has worked against the dollar.
    "The S&P500 briefly touched record highs yesterday, confirming the ability of equities to quickly
shrug off negative drivers to sentiment," said Francesco Pesole, FX strategist at ING. "This remains a key
point in favor of the dollar-bearish argument."
    The dollar though shrugged off better-than-expected U.S. jobless claims data.
    Initial claims for state unemployment benefits decreased 228,000 to a seasonally adjusted 963,000 for
the week ended Aug. 8. That was the lowest level since mid-March when authorities started shutting down
non-essential business to slow the spread of the novel coronavirus. Economists polled by Reuters had
forecast 1.12 million applications in the latest week.
    The Japanese yen recouped some of its losses from the previous day, against the dollar, which was last
down 0.1% at 106.78.
    The British pound rose 0.7% against the dollar to $1.3101.
    "I think the market is going through a consolidative phase for the dollar," said Vassili Serebriakov,
currency strategist, at UBS in New York, adding that the dollar's bearish trend remained well-entrenched.
    The onshore yuan briefly rose to a five-month high before steadying at 6.9421 per dollar.
U.S. and Chinese officials meet Saturday to review their Phase I trade deal.
    
    ========================================================
    Currency bid prices at 11:02AM (1502 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1832        $1.1782     +0.42%         +5.55%      +1.1864     +1.1782
 Dollar/Yen       JPY=        106.8800       106.8900    -0.01%         -1.82%      +106.9900   +106.5700
 Euro/Yen         EURJPY=     126.47         125.97      +0.40%         +3.71%      +126.7400   +125.9200
 Dollar/Swiss     CHF=        0.9099         0.9120      -0.23%         -5.98%      +0.9133     +0.9083
 Sterling/Dollar  GBP=        1.3088         1.3032      +0.43%         -1.29%      +1.3123     +1.3032
 Dollar/Canadian  CAD=        1.3208         1.3244      -0.27%         +1.74%      +1.3256     +1.3192
 Australian/Doll  AUD=        0.7172         0.7162      +0.14%         +2.15%      +0.7187     +0.7157
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0768         1.0745      +0.21%         -0.77%      +1.0790     +1.0747
 Euro/Sterling    EURGBP=     0.9039         0.9039      +0.00%         +6.92%      +0.9052     +0.9031
 NZ               NZD=        0.6566         0.6577      -0.17%         -2.52%      +0.6598     +0.6555
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.8713         8.9404      -0.77%         +1.06%      +8.9586     +8.8548
 Euro/Norway      EURNOK=     10.5003        10.5470     -0.44%         +6.73%      +10.5630    +10.4923
 Dollar/Sweden    SEK=        8.6750         8.6788      +0.26%         -7.19%      +8.6972     +8.6529
 Euro/Sweden      EURSEK=     10.2655        10.2391     +0.26%         -1.95%      +10.2800    +10.2375
 
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho in London and Alistair
Bell)
  
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