FOREX-Dollar gains as coronavirus fears return to fore

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds details and investor comment, updates prices, changes
dateline, previous NEW YORK)
By Noel Randewich
June 24 (Reuters) - The dollar strengthened on Wednesday as
a rise in coronavirus cases in the United States reduced
confidence in a quick economic recovery, and as the U.S. weighed
tariffs on European products.
As the number of new coronavirus cases surged in many areas
of the United States, the governors of New York, New Jersey and
Connecticut - once at the epicenter of the outbreak - announced
they will require visitors from states with high COVID-19
infection rates to quarantine on arrival. "Ultimately, it is COVID driving things, and today the glass
is half empty," said Axel Merk, president and chief investment
officer at Merk Investments in Palo Alto, California. "The
context, of course, is relevant because the dollar has been
weakening in recent weeks, so it does not take much to reverse
that trend."
The dollar index USD= strengthened 0.52% to 97.141. It
remains down more than 5% from a three-year high of 102.99 in
March.
The coronavirus pandemic is causing wider and deeper damage
to economic activity than first thought, the International
Monetary Fund said on Wednesday, prompting the institution to
slash its 2020 global output forecasts further. Concerns about an increase in tariffs also weighed on risk
sentiment, and boosted demand for the greenback.
The United States is considering changing tariff rates for
various European products as part of the trading partners'
aircraft dispute, according to a notice by the Office of the
U.S. Trade Representative on Tuesday. The euro EUR= fell 0.43% to $1.1257. It had reached a
one-week high of $1.1348 on Tuesday after data showed that a
downturn in the euro zone economy eased again this month.
The greenback rose 0.39% to 106.93 Japanese yen JPY= . It
fell as low as 106.06 yen on Tuesday, the weakest since May 7.
The Canadian dollar added to losses after Fitch downgraded
the country's long-term foreign currency debt rating to "AA+",
warning of a ballooning government deficit caused by public
spending related to the pandemic. The U.S. dollar was last up 0.46% against the loonie at
$1.3607.
The New Zealand dollar underperformed after the country's
central bank said the balance of economic risks remains to the
downside and that it is prepared to use additional monetary
tools as necessary. The kiwi NZD= tumbled 1.29% to $0.6405.
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Currency bid prices at 11:58AM (1858 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1257 $1.1306 -0.43% +0.42% +1.1325 +1.1256
Dollar/Yen JPY= 106.9300 106.5100 +0.39% -1.77% +106.9800 +106.3900
Euro/Yen EURJPY= 120.38 120.46 -0.07% -1.29% +120.7400 +120.0500
Dollar/Swiss CHF= 0.9476 0.9445 +0.33% -2.09% +0.9486 +0.9434
Sterling/Dollar GBP= 1.2424 1.2518 -0.75% -6.30% +1.2542 +1.2417
Dollar/Canadian CAD= 1.3607 1.3545 +0.46% +4.78% +1.3617 +1.3527
Australian/Doll AUD= 0.6868 0.6929 -0.88% -2.18% +0.6961 +0.6864
ar
Euro/Swiss EURCHF= 1.0671 1.0681 -0.09% -1.67% +1.0692 +1.0661
Euro/Sterling EURGBP= 0.9059 0.9031 +0.31% +7.16% +0.9073 +0.9017
NZ NZD= 0.6405 0.6489 -1.29% -4.91% +0.6514 +0.6407
Dollar/Dollar
Dollar/Norway NOK= 9.6794 9.5213 +1.66% +10.26% +9.6870 +9.4796
Euro/Norway EURNOK= 10.8972 10.7560 +1.31% +10.77% +10.9088 +10.7309
Dollar/Sweden SEK= 9.3560 9.2914 +0.28% +0.09% +9.3594 +9.2545
Euro/Sweden EURSEK= 10.5358 10.5066 +0.28% +0.64% +10.5415 +10.4760