* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Tracking the coronavirus: https://tmsnrt.rs/3aIRuz7
* Dollar falls as Asia wakes up to Fed rate cut
* Central banks rushing to restore confidence in markets
* Investors fret economic impact of coronavirus
By Stanley White
TOKYO, March 16 (Reuters) - The dollar fell against a broad
range of currencies on Monday after the U.S. Federal Reserve
made another surprise interest rate cut and major central banks
took steps to relieve a shortage of dollars and provide extra
liquidity.
Pressure has been building on central banks to do something
to restore calm to financial markets roiled by the deepening
coronavirus crisis.
The U.S. Federal Reserve cut rates to a target range of 0%
to 0.25% on Sunday, U.S. time, and said it would expand its
balance sheet by at least $700 billion in coming weeks.
The Bank of Japan said it will hold an emergency policy
meeting on Monday at 12 noon Japan time (0300 GMT), joining a
step up in the global response to the flu-like virus that has
spread from China to dozens of countries and claimed more than
5,800 lives. Five other central banks cut pricing on their swap lines to
make it easier to provide dollars to their financial
institutions facing stress in credit markets.
"It's a modest negative reaction for the U.S. dollar. The
Fed moved a little sooner and a little more aggressive that some
thought," said Ray Attrill, head of FX strategy at National
Australia Bank in Sydney.
"This cannot prevent the economic fallout from social
distancing," he said, referring to a method being used by many
countries to try slow the spread of the virus. "That will
require some fiscal spending and something from the government
to make sure small companies are funded."
The dollar fell 0.6% to 106.85 yen JPY=EBS on Monday,
trimming some of its losses as traders braced for the BOJ.
The greenback also fell 0.3% to $1.2330 per British pound
GBP=D3 .
Against the euro EUR=EBS , the dollar slid 0.1% to $1.1104.
The dollar was little changed at 0.9516 Swiss franc
CHF=EBS .
The Fed, the Bank of Canada, European Central Bank, the Bank
of England, the Bank of Japan (BOJ) and Swiss National Bank all
agreed to offer three-month credit in U.S. dollars on a regular
basis and at a rate cheaper than usual.
The move was designed to bring down the price banks and
companies pay to access U.S. dollars, which has surged in recent
weeks as the coronavirus outbreak spooked investors.
The Fed had already cut interest rates by half a percentage
point on March 3 at an emergency meeting, the first emergency
cut since the financial crisis in 2008, but that move failed to
stem market volatility.
Sunday's rate cut was likely aimed at staving off what had
the potential to be another volatile week in financial markets,
analysts say. However, U.S. stock futures still plunged and
Asian shares fell, showing investors remain nervous. L4N2B80YP
In the onshore market, the yuan CNY=CFXS strengthened
slightly to 6.9996 per dollar.
CHINA, AUSTRALIA AND NEW ZEALAND MOVES
The People's Bank of China injected 100 billion yuan
($14.28 billion) into financial institutions on Monday but left
borrowing cost on its medium term loans unchanged. The move came minutes before data was released showing
China's retail sales, industrial output, and fixed-asset
investment in January and February all tumbled.
The data reveal the scale of damage caused by the
coronavirus and suggest other countries could be in the same
situation.
Worries that travel restrictions and factory closures aimed
at containing the coronavirus will cause a global recession have
sent equities into a tailspin.
The recent spread of the virus in Europe and the United
States has rattled investors who previously thought those
regions were shielded.
The Reserve Bank of New Zealand joined the global easing
race with a rate cut of 75 basis points to a record 0.25%, while
the Reserve Bank of Australia (RBA) added A$5.9 billion ($3.62
billion) to the banking system through market repo operations.
The RBA said on Monday it stands ready to purchase
government bonds and will announce further policy measures on
Thursday. There is lingering speculation the RBA will also cut
rates at some point.
The New Zealand dollar NZD=D3 fell 0.41% to $0.6032, while
the Australian dollar AUD=D3 fell 0.82% o $0.6133.
($1 = 1.6300 Australian dollars)
($1 = 7.0010 Chinese yuan renminbi)