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FOREX-Safe-haven yen, Swiss franc rise on fears of virus impact

Published 01/31/2020, 10:15 PM
Updated 01/31/2020, 10:16 PM
© Reuters.  FOREX-Safe-haven yen, Swiss franc rise on fears of virus impact
USD/JPY
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USD/CHF
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* Offshore yuan stabilizes after breaching 7 per dollar
* Aussie, Kiwi extend losses to new multi-month lows
* Death toll from virus rises to 213, all in China
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Recasts, updates prices, adds new comment, U.S. data, FX
table, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 31 (Reuters) - The safe-haven yen and Swiss
franc gained on Friday as fears escalated about the global
economic impact of the latest coronavirus outbreak in China last
week.
The Australian dollar fell to a four-month low against the
U.S. dollar, while China's offshore yuan struggled to find a
footing in the wake of the virus outbreak.
The World Health Organization said late on Thursday that the
coronavirus outbreak was a global emergency, but opposed travel
restrictions and said China's actions so far would "reverse the
tide" of its spread, somewhat reassuring markets
The United States and other countries, however, tightened
travel curbs on Friday and businesses said they were facing
supply problems because of the coronavirus in China.
"The steady drumbeat of negative headlines combined with
government reactions to the spread of the virus is still roiling
markets a bit and it's hard for markets to find that stability,"
said Brad Bechtel, managing director at Jefferies in New York.
U.S. data on consumer spending and personal income did push
the dollar a little higher against the yen and euro, as core
consumer prices as measured by the personal consumption
expenditures (PCE) price index rose 0.2% last month after edging
up 0.1% the previous four months. That lifted the annual
increase in the so-called core PCE price index to 1.6% in
December from 1.5% in November. Investors, however, remained transfixed on the casualties
from the virus and feared its impact on the global economy
including businesses such as airlines and hotels.
The death toll rose to 213 on Friday, all in China. The
number of confirmed cases in China has risen beyond 9,800,
Beijing's envoy to the United Nations in Vienna said, while some
131 cases have been reported in 23 other countries and regions.
China's offshore yuan gave up earlier gains and was last
down against the dollar. The U.S. currency added 0.1% to 6.9884
CNH=EBS , although that was some way off the 7.0038 level the
yuan dropped to on Thursday.
The dollar fell 0.1% against the yen to 108.84 yen JPY= in
morning trading, and dropped 0.3% versus the Swiss franc to
0.9668 franc CHF= .
The Australian and New Zealand dollars, both sensitive to
sentiment in China, fell to new multi-month lows.
The New Zealand dollar NZD=D3 dropped 0.5% to US$0.6464,
after earlier touching a two-month low. The Australian dollar
AUD=D3 lost 0.3% to US$0.6699, hitting a four-month low
earlier in the session.
Both have shed more than 1.5% this week and the Aussie has
dropped more than 4% this month, leaving it poised for its worst
month since May 2016.

========================================================
Currency bid prices at 8:54 AM (1354 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1052 $1.1030 +0.20% -1.40% +1.1055 +1.1018
Dollar/Yen JPY= 108.8200 108.9500 -0.12% -0.04% +109.1300 +108.8400
Euro/Yen EURJPY= 120.29 120.19 +0.08% -1.36% +120.3900 +120.0800
Dollar/Swiss CHF= 0.9664 0.9693 -0.30% -0.14% +0.9713 +0.9667
Sterling/Dollar GBP= 1.3141 1.3094 +0.36% -0.87% +1.3144 +1.3085
Dollar/Canadian CAD= 1.3226 1.3208 +0.14% +1.85% +1.3244 +1.3195
Australian/Doll AUD= 0.6702 0.6719 -0.25% -4.54% +0.6729 +0.6684
ar
Euro/Swiss EURCHF= 1.0684 1.0695 -0.10% -1.55% +1.0706 +1.0685
Euro/Sterling EURGBP= 0.8408 0.8424 -0.19% -0.54% +0.8434 +0.8388
NZ NZD= 0.6469 0.6485 -0.25% -3.96% +0.6494 +0.6455
Dollar/Dollar
Dollar/Norway NOK= 9.2220 9.1791 +0.47% +5.05% +9.2453 +9.1665
Euro/Norway EURNOK= 10.1947 10.1273 +0.67% +3.63% +10.1974 +10.1124
Dollar/Sweden SEK= 9.6581 9.6352 +0.45% +3.32% +9.6836 +9.6280
Euro/Sweden EURSEK= 10.6770 10.6291 +0.45% +1.98% +10.6822 +10.6225

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