FOREX-Dollar edges higher as oil rout hits commodity currencies, EU meeting eyed

* Oil-linked currencies weaken against dollar
* Kiwi rises as lockdown rules to ease

(Updates to U.S. afternoon)
By Saqib Iqbal Ahmed
NEW YORK, April 20 (Reuters) - The dollar edged higher
against a basket of currencies on Monday as tumbling oil prices
pressured oil-linked currencies and as investors awaited the
outcome of a European Union summit this week on how to tackle
economic fallout from the novel coronavirus crisis.
The U.S. Dollar Currency Index =USD , which measures the
greenback's strength against six major currencies, was up 0.07%
at 99.912.
The index has pulled back from the three-year high of 102.97
hit in mid-March as the rapid deployment of monetary stimulus
measures by the U.S. Federal Reserve eased the strain on dollar
funding.
Caution recaptured world markets as a drubbing for U.S. WTI
crude oil kicked off a busy week of data and earnings that will
drive home the damage being inflicted by global coronavirus
lockdowns. The sharp drop in oil prices was boosting the buck's appeal
as a safe-haven, said Juan Perez, senior currency trader at
Tempus Inc in Washington.
"This is the ultimate manifestation of economic inactivity,"
Perez said.
Oil-linked currencies were weaker with the U.S. dollar 0.84%
higher against its Canadian counterpart, while the Mexican peso
lost about 2.1% against the greenback.
Perez, however, said further weakness for the two currencies
might be limited.
A measure of dollar positioning NETUSDALL= derived from
net positions of International Monetary Market speculators in 10
major currencies, including the yen and the euro, posted a net
short position valued at $10.52 billion, up from $9.73 billion a
week earlier. Investors will be watching for signs of progress as heads of
European Union governments are scheduled to hold a video summit
over how to tackle the economic fallout from the crisis on
Thursday, where differing views on coronabonds, mostly demanded
by southern EU member states, are expected to be
voiced. Expectations were low that participants would signal a
united front, which could pressure the euro in the short term,
analysts said.
The euro was about flat against the greenback.
The New Zealand dollar NZD=D3 held its own against the
greenback, rising 0.4% after the country said it will lower its
alert level one notch next Monday - allowing some businesses to
resume - and review that stance on May 1. The economic impact of the enforced lockdown will be evident
from data later this week where flash PMI data for April will be
released.

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CFTC positions IMAGE https://reut.rs/3cwvA1Z
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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