FOREX-Euro jumps as ECB increases stimulus

(Adds details, updates prices; changes byline, dateline;
previous LONDON)
By Karen Brettell
NEW YORK, June 4 (Reuters) - The euro jumped to a 12-week
high against the U.S. dollar on Thursday after the European
Central Bank increased stimulus to shore up economies hurt by
the coronavirus pandemic.
The ECB increased the size of its Pandemic Emergency
Purchase Program (PEPP) to 1.35 trillion euros ($1.52 trillion)
from 750 billion euros, more than the 500 billion-euro increase
most analysts had expected, and extended it until June 2021 at
the earliest, with a pledge to reinvest proceeds until at least
the end of 2022. "This highlights the ECB's commitment to strengthening the
recovery," said Jai Malhi, global market strategist at J.P.
Morgan Asset Management in London. "The euro zone may well
emerge from the COVID-19 recession more quickly than the U.S.
and UK.
The single currency EUR= was last up 0.21% on the day at
$1.1256, after earlier reaching $1.1273, the highest since March
12. It has gained for eight consecutive sessions.
The dollar index =USD , which measures the greenback
against a basket of major currencies, fell 0.18% on the day to
97.144.
The dollar has declined for the past two weeks as risk
sentiment improves and stocks surge on optimism that the worst
of the economic downturn from the coronavirus has passed.
A stocks rally appeared to run out of steam on Thursday,
however, with Wall Street opening lower. U.S. data showed that the number of Americans filing for
unemployment benefits dropped below 2 million last week for the
first time since mid-March, but remains astonishingly high as
companies adjust to an environment that has been significantly
changed by COVID-19. The dollar fell 0.15% against the safe-haven Japanese yen
JPY= to 108.72 yen, after earlier gaining to 109.16, the
highest since April 7.
The Australian dollar AUD= , which has been one of the best
performers from the recent increase in risk appetite, dippped
0.4% to $0.6916, after reaching $0.6983 on Wednesday, the
highest since Jan. 3.
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Currency bid prices at 9:38AM (1338 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1256 $1.1232 +0.21% +0.41% +1.1273 +1.1196
Dollar/Yen JPY= 108.7300 108.8900 -0.15% -0.12% +109.1600 +108.6300
Euro/Yen EURJPY= 122.41 122.32 +0.07% +0.38% +122.7700 +121.8500
Dollar/Swiss CHF= 0.9582 0.9612 -0.31% -1.00% +0.9626 +0.9573
Sterling/Dollar GBP= 1.2538 1.2572 -0.27% -5.43% +1.2580 +1.2501
Dollar/Canadian CAD= 1.3520 1.3493 +0.20% +4.11% +1.3541 +1.3468
Australian/Doll AUD= 0.6916 0.6919 -0.04% -1.50% +0.6934 +0.6883
ar
Euro/Swiss EURCHF= 1.0785 1.0795 -0.09% -0.62% +1.0805 +1.0745
Euro/Sterling EURGBP= 0.8976 0.8931 +0.50% +6.17% +0.8980 +0.8929
NZ NZD= 0.6417 0.6419 -0.03% -4.74% +0.6444 +0.6405
Dollar/Dollar
Dollar/Norway NOK= 9.4140 9.4522 -0.40% +7.24% +9.5143 +9.3878
Euro/Norway EURNOK= 10.5980 10.6240 -0.24% +7.73% +10.6616 +10.5790
Dollar/Sweden SEK= 9.2563 9.2820 -0.07% -0.97% +9.3491 +9.2387
Euro/Sweden EURSEK= 10.4199 10.4270 -0.07% -0.47% +10.4690 +10.4100