* Dollar posts losses for the quarter and the month
* Treasury's Munchin, Fed's Powell testify before Congress
* UK economy posts worst quarter since 1979
* Weak sentiment amid pandemic worries
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Recasts with outlook from U.S. officials; updates prices;, adds analyst comment)
By Gertrude Chavez-Dreyfuss
NEW YORK, June 30 (Reuters) - The dollar slipped on Tuesday, alternating between gains and losses, as
markets digested less bearish comments from U.S. monetary officials along with a more dire prognosis from
the country's top medical expert on the spread of the novel coronavirus.
The dollar gained against the euro and the yen, but fell versus sterling, the Swiss franc, and
commodity currencies such as the Australian, New Zealand and Canadian dollars.
Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell, in testimony before the
U.S. House of Representatives Financial Services Committee on Tuesday, suggested a willingness to do more
for the U.S. economy as it battles the enormous fallout from the virus outbreak. Mnuchin said he is working with the House and the Senate to pass more coronavirus relief by the end of
July, while Powell said the Fed can lower the minimum loan threshold under the Main Street lending program
in the future. On the other hand, Dr. Anthony Fauci, the head of the National Institute of Allergy and Infectious
Diseases, in remarks to a Senate committee on Tuesday warned of the risks of a surge in cases and said the
country should not bank on the availability of a safe and effective COVID-19 vaccine. In early afternoon trading, the dollar index slipped to 97.380. For the quarter and month, the dollar
fell 1.6% and nearly 1.0%, respectively. It was the worst monthly performance for the dollar since
December.
"The dollar is consolidating right now," said Marc Chandler, chief market strategist, at Bannockburn
Forex in New York.
"The upside on the dollar really began on June 10 and so I think we can see one more leg up in the
dollar," he said. "As we get into July, there is some uncertainty -- today for example is the last day of
the PPP (payroll protection program) and at the end of next month is the end of the unemployment claims,
unless it gets extended."
There are concerns as well on the resurgence in U.S. coronavirus cases.
The United States saw a 46% increase in new cases of COVID-19 in the week ended June 28 compared with
the previous seven days, with 21 states reporting positive test rates above the level that the World
Health Organization has flagged as concerning. In other currencies, the dollar gained 0.3% versus the yen, to 107.93 yen JPY=EBS .
The euro inched lower against the dollar to $1.1234. It was earlier pressured by data showing
underlying price pressures dropped again in the euro zone.
Over the quarter, the euro staged a 1.6% comeback after falling by a similar margin during the first
three months of the year. For the month of June, the euro was up 0.9%.
Traders said there remains a barrier of $1.1200 for the euro on the downside.
Sterling reversed losses against the dollar to trade up 0.2% at $1.2328 GBP=D3 . The pound fell
earlier after data showed the economy shrank by 2.2% between January and March, its worst performance
since 1979, as households slashed spending. The Swiss franc CHF=EBS gained against the dollar. The greenback was last down 0.5% at 0.9467 franc
CHF=EBS .
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Currency bid prices at 2:49PM (1849 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1233 $1.1240 -0.06% +0.21% +1.1261 +1.1192
Dollar/Yen JPY= 107.9100 107.5600 +0.33% -0.87% +107.9700 +107.5300
Euro/Yen EURJPY= 121.24 120.92 +0.26% -0.58% +121.4100 +120.5900
Dollar/Swiss CHF= 0.9469 0.9511 -0.44% -2.16% +0.9532 +0.9463
Sterling/Dollar GBP= 1.2385 1.2296 +0.72% -6.59% +1.2392 +1.2259
Dollar/Canadian CAD= 1.3587 1.3657 -0.51% +4.63% +1.3699 +1.3590
Australian/Doll AUD= 0.6897 0.6864 +0.48% -1.77% +0.6911 +0.6834
ar
Euro/Swiss EURCHF= 1.0640 1.0692 -0.49% -1.95% +1.0699 +1.0632
Euro/Sterling EURGBP= 0.9068 0.9138 -0.77% +7.26% +0.9144 +0.9070
NZ NZD= 0.6453 0.6419 +0.53% -4.20% +0.6461 +0.6386
Dollar/Dollar
Dollar/Norway NOK= 9.6335 9.6711 -0.39% +9.74% +9.7682 +9.6220
Euro/Norway EURNOK= 10.8267 10.8720 -0.42% +10.05% +10.9500 +10.8255
Dollar/Sweden SEK= 9.3115 9.3280 -0.22% -0.38% +9.3872 +9.2825
Euro/Sweden EURSEK= 10.4640 10.4872 -0.22% -0.05% +10.5240 +10.4510