* Dollar index up 0.4 pct but still off Dec. 14 high
* US government shutdown, Fed rate concerns weigh
NEW YORK, Dec 26 (Reuters) - The dollar gained against a basket of other currencies onWednesday as U.S. stocks came off 20-month lows, though uncertainty relating to the U.S.government shutdown and Federal Reserve monetary policy remained a headwind for thegreenback.
U.S. stocks gained more than 2 percent as a rebound in technology shares and a jump inretailers led by Amazon.comAMZN.O put the market on pace to snap a four-session losingstreak. urn:newsml:reuters.com:*:nL3N1YV2P5
"There is a modest sense of temporary stability returning to equity markets," NickBennenbroek, a currency strategist at Wells Fargo in New York, said in a report.
"That said, trading conditions remain light and investors remain somewhat cautious,watching closely for more U.S. political headlines," Bennenbroek said.
On Tuesday, U.S. President Donald Trump said the partial shutdown of the federalgovernment was going to last until his demand for funds to build a wall on the U.S.-Mexicoborder is met. urn:newsml:reuters.com:*:nL1N1YU063
Trump also repeated his criticism that the Fed has raised interest rates too quickly.The dollar has been hit in recent weeks by investor fears that rate increases will hurt theU.S. economy as international growth sputters.
"There's an endless laundry list of concerns: Trump berating the Fed, Trade Wars, Chinaslowing growth, Brexit casualties, EU slowdown. But when you factor in a downturn in theU.S. economy, this is when things get ugly," Stephen Innes, head of trading APAC at Oandain Singapore, said in a note.
The dollar index against a basket of six other major currencies .DXY gained 0.43percent to 96.967. It was down from a 1-1/2-year high of 97.711 on Dec. 14.
In an apparent attempt to calm Wall Street nerves frayed by Trump's criticism of theFed, a White House official said on Wednesday that Fed Chairman Jerome Powell faces no riskof losing his job and President Donald Trump is happy with his Treasury secretary, StevenMnuchin. urn:newsml:reuters.com:*:nL1N1YV0DB
Liquidity was thin after major markets were closed on Tuesday for the Christmasholiday. Markets in Britain, Germany and France remained closed on Wednesday.
Currency bid prices at 1351 EST (1851 GMT): Description RIC Last U.S. Close Pct YTD Pct High Bid Low Bid
Previous Change Change
Session Euro/Dollar EUR= $1.1363$1.1361 +0.02 -5.29 +1.1421 +1.1351 Dollar/Yen JPY= 110.8900 110.2700 +0.56 -1.58 +111.0000 +110.1500 Euro/Yen EURJPY= 126.02 125.67 +0.28 -6.78 +126.2400 +125.6600 Dollar/Swiss CHF= 0.9938 0.9836 +1.04 +2.00 +0.9947 +0.9853 Sterling/Dollar GBP= 1.2641 1.2684 -0.34 -6.45 +1.2719 +1.2637 Dollar/Canadian CAD= 1.3587 1.3588 -0.01 +8.03 +1.3617 +1.3573 Australian/Doll AUD= 0.7058 0.7037 +0.30 -9.52 +0.7070 +0.7033 ar Euro/Swiss EURCHF= 1.1295 1.1257 +0.34 -3.37 +1.1308 +1.1246 Euro/Sterling EURGBP= 0.8987 0.8980 +0.08 +1.17 +0.9008 +0.8968 NZ NZD= 0.6721 0.6724 -0.04 -5.15 +0.6745 +0.6721 Dollar/Dollar Dollar/Norway NOK= 8.7679 8.7699 -0.02 +6.83 +8.8246 +8.7372 Euro/Norway EURNOK= 9.9647 9.9771 -0.12 +1.18 +10.0476 +9.9597 Dollar/Sweden SEK= 9.0870 9.0533 +0.12 +10.79 +9.1047 +9.0404 Euro/Sweden EURSEK= 10.3279 10.3151 +0.12 +4.97 +10.3685 +10.3108
(Editing by David Gregorio) ((Karen.Brettell@thomsonreuters.com; +1 646 223 6274; Reuters Messaging:firstname.lastname@example.org))
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