* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Adds quotes, updates prices, new byline, changes dateline,
previous LONDON)
By Karen Brettell
NEW YORK, March 26 (Reuters) - The dollar dropped to a
one-week low against a basket of currencies on Thursday after
data showed an unprecedented surge in Americans filing for
unemployment benefits, as businesses across the country shut
down in an attempt to stem the spread of the coronavirus.
The number of Americans filing claims for unemployment
benefits shot to record of more than 3 million last week.
The jobless blowout was announced shortly after Federal
Reserve Chairman Jerome Powell said that the U.S. economy "may
well be in recession" but progress in controlling the spread of
the coronavirus will dictate when the economy can fully reopen.
His remarks were an unusual acknowledgement by a Fed chair that
the economy may be contracting even before data confirms it.
“The number has sent chills through the markets. If these
numbers continue for three or four weeks, there will be demand
for more fiscal support," and even more monetary support from
the Fed, said Quincy Krosby, chief market strategist at
Prudential Financial in Newark, New Jersey.
The dollar index =USD fell to 99.92, the lowest since
March 18.
The euro EUR= gained to $1.0972, up 0.85% on the day and
the highest since March 18.
The greenback dipped 1.53% against the Japanese yen to
109.49 yen. JPY=
The Australian dollar AUD= jumped 1.31% to $0.6036.
The U.S. Senate on Wednesday unanimously backed a $2
trillion bill aimed at helping unemployed workers and industries
hurt by the coronavirus epidemic, as well as providing billions
of dollars to buy urgently needed medical equipment.
The Federal Reserve last week launched new bond purchase and
lending programs in an attempt to ease market logjams. It also
committed to swapping dollars for foreign currencies with other
major central banks after a desperate scramble for the currency
last week sent the dollar to three year highs against the euro,
35-year highs against sterling and 17-year highs against the
Australian dollar.
“Although the latest Fed measures have helped calm markets,
as long as the Covid-19 crisis continues and the world economy
is effectively in lockdown, we would expect markets to remain in
turmoil,” foreign exchange analysts at Bank of America said in a
report on Thursday.
========================================================
Currency bid prices at 9:23AM (1323 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0972 $1.0880 +0.85% -2.12% +1.0990 +1.0872
Dollar/Yen JPY= 109.4900 111.1900 -1.53% +0.58% +111.3000 +109.3900
Euro/Yen EURJPY= 120.15 121.00 -0.70% -1.48% +121.0800 +119.9700
Dollar/Swiss CHF= 0.9684 0.9767 -0.85% +0.06% +0.9777 +0.9678
Sterling/Dollar GBP= 1.2012 1.1885 +1.07% -9.40% +1.2031 +1.1778
Dollar/Canadian CAD= 1.4073 1.4190 -0.82% +8.37% +1.4275 +1.4069
Australian/Doll AUD= 0.6036 0.5958 +1.31% -14.03% +0.6056 +0.5871
ar
Euro/Swiss EURCHF= 1.0630 1.0628 +0.02% -2.05% +1.0653 +1.0619
Euro/Sterling EURGBP= 0.9132 0.9150 -0.20% +8.02% +0.9239 +0.9130
NZ NZD= 0.5913 0.5848 +1.11% -12.22% +0.5932 +0.5779
Dollar/Dollar
Dollar/Norway NOK= 10.4901 10.7480 -2.40% +19.50% +10.8276 +10.4780
Euro/Norway EURNOK= 11.5130 11.6970 -1.57% +17.01% +11.8276 +11.5036
Dollar/Sweden SEK= 10.0325 10.0749 +0.19% +7.33% +10.1565 +10.0158
Euro/Sweden EURSEK= 11.0060 10.9847 +0.19% +5.13% +11.0704 +10.9796