FOREX-Dollar falls as yuan leads charge in risk-on trades

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar falls as focus shifts to economic recovery
* Yuan gains yet again on bets for Chinese growth
* Coronavirus remains a risk to sentiment

By Stanley White
TOKYO, July 9 (Reuters) - The dollar fell against most
currencies on Thursday as a rally in riskier assets such as
global equities and commodities put a dent in safe-haven demand
for the U.S. currency.
China's yuan rose to a four-month high against the
greenback, extending recent gains as investors of all stripes
increase positions in Chinese stocks due to growing signs of a
recovery in the world's second-largest economy. CNY/
Lingering worries about the spread of the coronavirus could
keep some currency pairs in a tight range, but the dollar's
losses are gradually increasing as sentiment favours riskier
bets on long-term economic growth.
"Rising stocks and a dip in Treasury yields are slight
negatives for the dollar, but the market can't move too far
because we still have to worry about the virus," said Minori
Uchida, head of global market research at MUFG Bank.
"A lot of major U.S. economic data have been positive, so
this will be less of a trading factor going forward. People are
looking for cues from stocks, yields, and hedging costs."
Against the euro EUR= , the dollar fell 0.3% to $1.1365,
reaching a one-month low.
The euro could get a further boost later in the day as
Germany is scheduled to release export data. Economists expect
shipments from the euro zone's largest economy to rebound
sharply in May from a large decline in the previous month.
The greenback also fell to a three-week low against the
pound GBP= at $1.2637.
Sterling edged up to 89.97 pence per euro EURGBP=D3 .
The dollar fell to a four-month low of 0.9365 Swiss franc
CHF= on Thursday.
The dollar was little changed at 107.27 yen JPY= .
Chinese shares continued their recent rally and surged to a
five-year high during the Asian session. .SS Futures pointed
to further gains in European equities, highlighting the
enthusiasm for risk-on trades. MKTS/GLOB
Investors are also looking to U.S. weekly jobless claims
later on Thursday, but the dollar looks set to remain on the
back foot until then.
The onshore yuan CNY=CFXS burst past the closely watched
level of 7 to reach an almost four-month high of 6.9820 per
dollar.
China's currency has been a star performer as investors
shrug off diplomatic tension between Washington and Beijing to
focus on China's improving economy and its attractive technology
sector.
The yuan has risen around 2.7% from a seven-month trough
against the dollar set on May 27.
While some investors are reluctant to take big positions
before the traditional summer holiday season amid uncertainty
around the coronavirus pandemic, analysts said sentiment favours
more U.S. dollar declines as investors try to look past a recent
spike in coronavirus cases in some countries.
Elsewhere in currencies, the Australian dollar AUD=D3 rose
to a one-month high at $0.695.
Highlighting the greenback's woes, the New Zealand dollar
NZD=D3 rose to $0.6590, the highest since late January.