* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
LONDON, Oct 23 (Reuters) - The dollar was stable against
most currencies on Friday after a measured U.S. presidential
debate, but it was headed for weekly losses as investors waited
for a breakthrough in stimulus talks in Washington and
post-Brexit trade negotiations.
U.S. President Donald Trump adopted a more restrained tone
than in the first debate, though exchanges again focused on the
handling of the COVID-19 pandemic and personal slights.
The dollar was 0.03% lower against a basket of currencies
in early trades in Europe, just clear of a seven-week low
hit on Wednesday. It was still down about 0.7% for the week.
The euro was unchanged against the dollar at $1.1818,
So was sterling at $1.3084.
The chief negotiators for Britain and the European Union
were set to meet on Friday for negotiations on a last-minute
trade deal that would stave off a tumultuous finale to the
five-year Brexit crisis.
"As has been the case recently, the main focus will be
headlines on Brexit, fiscal stimulus and the prospects for the
U.S. election", Adam Cole, chief currency strategist at RBC
Capital Markets told his clients in a morning note.
Euro zone bond yields inched lower as business surveys in
France and Germany showed the impact of the second wave of
COVID-19 infections in the bloc's two biggest economies.
The safe-haven yen rose about 0.1% to 104.71 per
dollar, paring some losses made on Thursday after U.S. House
Speaker Nancy Pelosi said stimulus talks had made progress.
Hopes that Congress might pass a stimulus package before the
election and confidence that spending would follow, no matter
who gets elected, has driven a sell-off in the bond market in
anticipation of inflation and government borrowing.
A Biden victory, which polls predict, will probably drive
further dollar weakness, because he's expected to spend more on
coronavirus aid than Trump.
However, betting markets showed a small movement in Trump's
favour in the immediate aftermath of the debate, bookmaker
Ladbrokes said on Twitter on Friday - which helped the dollar to
The Chinese yuan also held its ground against the
dollar after an official at China's foreign exchange regulator
said it has been more stable than expected, suggesting
authorities are not too worried about its recent rise.
The yuan has gained about 7.5% since the end of May as China
led the global coronavirus recovery. It was last at 6.6884 per
dollar in onshore trade, about half a percent shy of a 27-month
peak on Wednesday.
(Reporting by Julien Ponthus, editing by Larry King)