FOREX-Safe-haven yen, Swiss franc skid for 2nd day after China's virus measures

* Risk appetite picks up; markets monitor coronavirus
* Yen, Swiss franc drops as risk appetite grows
* Offshore yuan, Australian dollar rise
* Markets brace for more Chinese measures to ease virus impact
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Feb 4 (Reuters) - The safe-haven yen and Swiss franc faltered for a second straight session
against the U.S. dollar on Tuesday, with risk appetite growing as investors were encouraged about the
Chinese government's measures to contain the coronavirus and limit its economic fallout.
The yen posted its steepest daily fall versus the dollar in nearly six months, while the Swiss franc
had its largest daily percentage loss in more than a month.
The Japanese currency and Swiss franc tend to benefit in times of global tension, but they typically
struggle when risk sentiment improves.
In contrast, commodity-linked currencies such as the Australian and New Zealand dollars along with the
offshore Chinese yuan rose, even as the virus remained a threat.
The People's Bank of China (PBOC) has pumped hundreds of billions of dollars into the financial system
this week to cushion the potentially adverse economic impact. In the past two days, the PBOC has injected
1.7 trillion yuan ($242.74 billion) through open market operations. "There was a bit of optimism about the PBoC's injections into the market," said Mazen Issa, senior FX
strategist, at TD Securities in New York.
"It's a strong signal that China is willing to support financial markets in that regard to limit the
virus contagion. But this is very short term and doesn't do anything about the supply chain
disruptions," he added.
Still, the death toll from the virus epidemic climbed to 427, infecting 20,438 in China. There have
been nearly 200 cases elsewhere across 24 countries. Also, the outbreak is expected to have a
devastating impact on first-quarter growth, policy sources said. In afternoon trading, the dollar rose 0.8% against the yen to 109.51 yen JPY= , and gained 0.4%
versus the Swiss franc to 0.9690 franc CHF= .
Gains against the yen and franc helped push the dollar index higher to 97.952 .DXY , up 0.2% on the
day.
In U.S. politics, Democratic Party officials blamed "inconsistencies" for a delay in Iowa's caucus
results. A victory by left-leaning Bernie Sanders or Elizabeth Warren could hurt shares and
boost safe-haven currencies.
The euro, meanwhile, slipped 0.2% against the dollar to $1.1040 EUR= .
The Australian dollar rose 0.6% to US$0.6735 AUD=D3 , pulling away from a 10 1/2-year low of $0.6670
touched last October, after the Reserve Bank of Australia left its main cash rate unchanged at 0.75%.
The offshore yuan rose against the dollar, which fell 0.3% to 6.9935 CNH= .
Elsewhere, sterling rebounded from a near-six week low against the U.S. dollar to trade 0.4% higher at
$1.3038. GBP=D3 Sterling has been under pressure from worries over a hard Brexit amid a tough stance https://www.reuters.com/article/uk-britain-eu/sovereignty-comes-first-britain-lays-out-tough-stance-for-eu-trade-talks-idUSKBN1ZW0I2
taken by Prime Minister Boris Johnson on European Union trade talks. Currency bid prices at 3:09 PM (2009 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1042 $1.1058 -0.14% -1.50% +1.1064 +1.1034
Dollar/Yen JPY= 109.5000 108.6700 +0.76% +0.59% +109.5300 +108.5600
Euro/Yen EURJPY= 120.92 120.19 +0.61% -0.84% +120.9600 +120.0700
Dollar/Swiss CHF= 0.9693 0.9657 +0.37% +0.16% +0.9704 +0.9657
Sterling/Dollar GBP= 1.3035 1.2993 +0.32% -1.69% +1.3046 +1.2942
Dollar/Canadian CAD= 1.3280 1.3284 -0.03% +2.26% +1.3301 +1.3263
Australian/Doll AUD= 0.6735 0.6691 +0.66% -4.07% +0.6739 +0.6680
ar
Euro/Swiss EURCHF= 1.0705 1.0683 +0.21% -1.35% +1.0717 +1.0682
Euro/Sterling EURGBP= 0.8468 0.8509 -0.48% +0.17% +0.8537 +0.8465
NZ NZD= 0.6483 0.6460 +0.36% -3.76% +0.6489 +0.6450
Dollar/Dollar
Dollar/Norway NOK= 9.2152 9.2793 -0.69% +4.97% +9.2871 +9.2018
Euro/Norway EURNOK= 10.1759 10.2660 -0.88% +3.44% +10.2738 +10.1605
Dollar/Sweden SEK= 9.5922 9.6479 -0.75% +2.62% +9.6550 +9.5908
Euro/Sweden EURSEK= 10.5923 10.6722 -0.75% +1.18% +10.6754 +10.5910