(Adds details, updates prices; changes byline, dateline;
previous LONDON)
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Karen Brettell
NEW YORK, April 29 (Reuters) - The dollar fell on Wednesday
as stocks surged after Gilead Sciences reported an encouraging
update on a potential treatment for the novel coronavirus, which
has shut down businesses and battered the global economy.
Gilead's GILD.O experimental antiviral drug remdesivir
helped improve symptoms in COVID-19 patients who were given the
drug early more than among those who were treated later, the
company said. It also comes as optimism grows that businesses globally are
getting closer to reopening, which has boosted risk appetite and
reduced demand for the U.S. currency.
“We're seeing increasing chatter about economies opening up
around the world, so that would suggest that the global economic
reboots could happen sooner rather than later,” said Joe
Manimbo, senior market analyst at Western Business Solutions on
Washington. “That's risk positive and negative for (safe) haven
assets.”
The greenback fell 0.26% against a basket of currencies
=USD to 99.62, above a two-week low of 99.44 hit on Tuesday.
The Australian dollar AUD= , which is seen as a proxy for
global growth, jumped 0.57% to $0.6527. It earlier reached
$0.6547, the highest since March 10.
The greenback also dipped after data showed that the U.S.
economy contracted in the first quarter.
The Commerce Department said gross domestic product fell at
a 4.8% annualized rate in the January-to-March period after
expanding at a 2.1% rate in the final three months of
2019. The dollar reaction to the data was not “huge,” but “I think
it's going to pour cold water over hopes of a V-shape recovery.
And I think it also validates fears that second-quarter growth
could be in line with some of the more dire forecasts of a 40%
contraction,” Manimbo said.
The Federal Reserve will conclude its two-day meeting later
on Wednesday, when policymakers are expected to keep their
promise to do whatever it takes to support the world's largest
economy. The dollar has weakened more than 3% after scaling a more
than three-year peak of 102.99 in late March as global central
banks launched massive stimulus measures to protect economies
from the coronavirus pandemic.
The euro EUR=EBS gained 0.43% to $1.0865 before a European
Central Bank meeting on Thursday.
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Currency bid prices at 9:37AM (1337 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0865 $1.0818 +0.43% -3.08% +1.0874 +1.0819
Dollar/Yen JPY= 106.5700 106.8600 -0.27% -2.10% +106.8900 +106.3700
Euro/Yen EURJPY= 115.80 115.62 +0.16% -5.04% +115.9200 +115.4600
Dollar/Swiss CHF= 0.9713 0.9750 -0.38% +0.36% +0.9754 +0.9714
Sterling/Dollar GBP= 1.2443 1.2421 +0.18% -6.16% +1.2485 +1.2390
Dollar/Canadian CAD= 1.3924 1.3993 -0.49% +7.22% +1.4003 +1.3918
Australian/Doll AUD= 0.6527 0.6490 +0.57% -7.04% +0.6547 +0.6487
ar
Euro/Swiss EURCHF= 1.0555 1.0549 +0.06% -2.74% +1.0575 +1.0548
Euro/Sterling EURGBP= 0.8731 0.8705 +0.30% +3.28% +0.8755 +0.8695
NZ NZD= 0.6099 0.6054 +0.74% -9.46% +0.6114 +0.6052
Dollar/Dollar
Dollar/Norway NOK= 10.3313 10.3962 -0.62% +17.69% +10.4387 +10.3340
Euro/Norway EURNOK= 11.2260 11.2548 -0.26% +14.12% +11.2983 +11.2253
Dollar/Sweden SEK= 9.8695 9.8838 +0.26% +5.59% +9.9007 +9.8431
Euro/Sweden EURSEK= 10.7251 10.6978 +0.26% +2.44% +10.7355 +10.6891
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