FOREX-Dollar gains on rising coronavirus crisis concerns

* Dollar recovers as risk aversion returns
* Euro, Aussie dollar among victims
* EU finance ministers fail to agree further support
* Talk put on hold until Thursday
* S&P cuts outlook on Australia's AAA rating
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Tom Wilson
LONDON, April 8 (Reuters) - The dollar firmed on Wednesday
as optimism that the coronavirus crisis was slowing waned,
increasing investor concerns over the economic impact of the
pandemic.
The euro and the Aussie dollar were among the main losers at
the greenback's expense, a day after the dollar suffered its
worst drop against a basket of currencies in nearly two weeks.
The dollar's rise came as global stocks wavered after two
days of gains as deaths from the coronavirus mounted across the
globe. The rising toll soured U.S. markets late on Tuesday, with
pessimism spreading to Asian indexes a day later.
The euro EUR=EBS fell 0.4% to $1.0852, with a failure by
European Union finance ministers to agree on further support for
their coronavirus-hit economies spooking bond markets and
sending shorter-dated Italian yields spiking higher. GVD/EUR
The talks, which are trying to agree a package of measures
for governments, companies and individuals, were suspended until
Thursday. "The speed of the COVID19 crisis on the real economy has
been so brutally fast that it requires rapid policy response,"
Derek Halpenny, EMEA head of research for global markets at
MUFG, wrote in a note.
"On an EU-wide perspective that has not been forthcoming."
The dollar made large gains against the risk-sensitive
Australian and New Zealand dollars, which both fell about 0.6%.
AUD/
The Aussie AUD=D3 , last at $0.6139, was also bruised by
ratings agency S&P downgrading the outlook on Australia's
sovereign AAA rating from stable to negative as it warned the
cost of combating the coronavirus would weigh on the country's
finances. The dollar =USD , which for a month has very closely
tracked risk appetite as investors and businesses fearing the
worst have rushed to the world's reserve currency, also edged up
against the pound, the yen and the Swiss franc.
It last stood 0.3% higher against the pound GBP= at
$1.2299, short of recovering Tuesday's falls. It gained 0.1%
against the yen to 108.84 JPY= and 0.3% against the franc to
0.9723 CHF= .
"It's a two steps forward, one step back situation," said
Bank of Singapore currency analyst Moh Siong Sim.
Against a basket of currencies, the dollar edged up 0.3% to
100.170 =USD , and gained the same amount against the Chinese
yuan CNY= . CNY/

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