* Dollar bounces back after 7 weeks of decline
* Investors stick to hope of more stimulus talks
* Turkish lira near record low
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Hideyuki Sano and Eimi Yamamitsu
TOKYO, Aug 11 (Reuters) - The dollar held overnight gains on Tuesday following seven weeks of an almost relentless fall as investors clung to hopes of a bipartisan stimulus deal in Washington and U.S. bond yields rebounded from multi-month lows.
The dollar index jumped back to 93.568 from Friday's two-year low of 92.495. Having fallen for seven straight weeks, the currency was due for a short-term corrective bounce, traders said.
The euro changed hands at $1.1745 up slightly on the day, having eased 0.5% in previous trade. The dollar stood little changed at 106.07 yen.
"The dollar's decline appears to have come to a halt for now. Although talks on fiscal spending are locked in a stalemate, we are at least avoiding a complete cutoff of extra jobless benefit," said Minori Uchida, chief currency analyst at MUFG Bank.
U.S. President Donald Trump on Saturday signed executive orders restoring part of enhanced unemployment payments and suspending payroll taxes.
"Compared to market consensus of a stimulus deal worth $1 trillion-$1.5 trillion, economic boosts from the announced measures would be clearly smaller," said Takafumi Yamawaki, head of Japan rates and FX research at JPMorgan.
"Looking at market reactions, investors appear to think that there will be some sort of deal eventually," JPMorgan's Yamawaki.
U.S. congressional leaders and Trump administration officials said on Monday they were ready to resume negotiations on a coronavirus aid deal, although it was unclear whether Democrats and Republicans would be able to bridge their differences.
On Monday, the S&P500 index rose to a five-month high while the yield on 10-year U.S. Treasuries rose to as high as 0.581%, its highest level in more than a week.
Investors are also keeping an eye on the rapidly deteriorating relationship between Washington and Beijing.
China imposed sanctions on 11 U.S. citizens, including Republican lawmakers, following Washington's sanctions on Hong Kong and Chinese officials.
U.S. Treasury Secretary Steven Mnuchin said companies from China and other countries that do not comply with accounting standards will be delisted from U.S. stock exchanges as of the end of 2021.
While the market has shown limited response to the latest salvos, analysts say the confrontations have longer term implications.