* Euro, sterling fall against dollar
* U.S. dollar index up on stimulus doubts, vaccine uncertainty
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Adds Eli Lilly (NYSE:LLY) drug trial details, updates prices)
By Chuck Mikolajczak
NEW YORK, Oct 13 (Reuters) - The U.S. dollar strengthened on Tuesday as investors turned cautious after a Johnson & Johnson COVID-19 study was paused and as hopes dimmed that a fiscal stimulus package could be reached before the presidential election.
Major equity averages were lower, partly due to a decline in J&J JNJ.N shares after the company paused its study due to an unexplained illness in a participant, dampening optimism about a vaccine. Eli Lilly LLY.N also said its clinical trial for a COVID-19 antibody treatment was paused. consumer prices rose 0.2% in September, matching expectations, for a fourth straight monthly climb, though the pace has slowed amid considerable slack in the economy as it slowly recovers from a nadir caused by coronavirus shutdowns. dollar index =USD rose 0.528% against a basket of other currencies, putting it on track for its biggest daily percentage gain in three weeks.
The U.S. currency's safe-haven appeal has been curbed by growing expectations that a win by former U.S. Vice President Joe Biden on Nov. 3 would bring large stimulus for the pandemic-hit economy, bolstering the stock market and investor risk appetite.
"It's becoming increasingly evident to people that there is no stimulus coming before the election," said Erik Nelson, a currency strategist at Wells Fargo (NYSE:WFC) in New York.
"I wouldn't say markets were fully pricing stimulus or fully pricing a vaccine by the end of the year but they were probably tilted towards the more positive side of those expectations."
The greenback has held within a range of about 2% over the past three weeks as talks on a fiscal deal have progressed in fits and starts. Majority Leader Mitch McConnell said the Republican-led U.S. Senate would vote on a scaled-down coronavirus economic relief bill of the type Democrats have rejected as they hold out for trillions in aid. euro EUR=EBS was down 0.59% to $1.1745 while the Japanese yen weakened 0.17% versus the greenback.
Sterling GBP= was last trading at $1.2938, down 0.96%, after climbing above the $1.30 mark for the first time in a month on Friday as Britain's unemployment rate rose by more than expected to 4.5% in the three months to August. addition, as a deadline draws closer, British Prime Minister Boris Johnson told his top cabinet ministers on Tuesday he wanted a free trade deal with the European Union on the right terms but ending the year without one held "no fear." bid prices at 2:54PM (1854 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Euro/Dollar
EUR=EBS
$1.1745
$1.1815
-0.59%
+4.76%
+1.1815
+1.1730 Dollar/Yen
JPY=D3
105.4850
105.3550
+0.15%
-2.86%
+105.6200 +105.2900 Euro/Yen
EURJPY=
123.88
124.40
-0.42%
+1.58%
+124.4700 +123.8100 Dollar/Swiss
CHF=EBS
0.9146
0.9092
+0.61%
-5.47%
+0.9155
+0.9091 Sterling/Dollar GBP=D3
1.2937
1.3066
-0.99%
-2.47%
+1.3067
+1.2922 Dollar/Canadian CAD=D3
1.3140
1.3109
+0.24%
+1.15%
+1.3146
+1.3100 Aussie/Dollar
AUD=D3
0.7153
0.7211
-0.81%
+1.94%
+0.7210
+0.7151 Euro/Swiss
EURCHF=
1.0741
1.0738
+0.03%
-1.02%
+1.0745
+1.0726 Euro/Sterling
EURGBP=
0.9077
0.9040
+0.41%
+7.37%
+0.9081
+0.9020 NZ
NZD=D3
0.6641
0.6647
-0.09%
-1.31%
+0.6670
+0.6630 Dollar/Dollar
Dollar/Norway
NOK=D3
9.2420
9.1545
+1.03%
+5.44%
+9.2465
+9.1390 Euro/Norway
EURNOK=
10.8564
10.7914
+0.60%
+10.35%
+10.8598
+10.7769 Dollar/Sweden
8.8268
8.7884
-0.20%
-5.57%
+8.8294
+8.7569 Euro/Sweden
EURSEK=
10.3672
10.3884
-0.20%
-0.97%
+10.4100
+10.3307