FOREX-Dollar gains vs yen, Swiss franc as U.S. stocks bounce back

* Dollar up sharply vs Swiss franc
* Dollar index hits one-week high
* Focus on key events next week: Brexit, central bank
meetings
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Adds comment, updates prices)
By Chuck Mikolajczak and Gertrude Chavez-Dreyfuss
NEW YORK, June 12 (Reuters) - The U.S. dollar rose against
the safe-haven Japanese yen and Swiss franc on Friday as stocks
on Wall Street rallied from their worst one-day performance in
three months, while the euro dropped against the greenback,
erasing early gains.
The yen fell against the dollar for the first time in five
sessions, while the Swiss franc declined, as Wall Street rallied
to claw back some of the sharp losses suffered in the prior
session.
Going into next week, investors are bracing for a number of
key events, including discussions on the European Union recovery
fund, Brexit negotiations, Bank of England and Swedish National
Bank meetings. Federal Reserve Chair Jerome Powell's semi-annual
testimony to the Senate banking committee is also scheduled next
week.
"There has been a paring back of bearish bets on the
dollar," said Joe Manimbo, senior market analyst, at Western
Union Business Solutions in Washington.
"The Fed catalyzed that with its cautious outlook this week
and now the market is looking ahead to next week where it will
be really full of Fed speak, especially the Fed chairman
testifying on Capitol Hill so Fed caution back at the forefront,
that has helped the dollar stabilize."
Hopes of a post-COVID global recovery, the easing of
U.S.-China trade tensions and the prospect of capped long-term
yields in the United States had weighed on the dollar, pushing
it lower against most major currencies, before it strengthened.
In afternoon trading, the dollar rose 0.6% against the yen
to 107.455 yen JPY=EBS . That said, the dollar still posted its
worst weekly performance against the yen since late March.
Against the Swiss franc, the dollar surged 1.2% to 0.9551
franc CHF=EBS .
The euro fell 0.6% to $1.1228 EUR=EBS , sliding from
$1.1422, the three-month high it reached on Wednesday.
The dollar index, meanwhile, climbed 0.5% to 97.33 =USD ,
after earlier hitting a one-week high.
The British pound weakened on data showing Britain's economy
shrank by a record 20.4% in April from March as the country
spent the month in a tight coronavirus lockdown. Investors saw
the number as likely the bottom of the crash before what is
expected to be a long and slow recovery. Sterling was last down 0.9% at $1.2487 GBP=D3 and was
slightly lower versus the euro. In the afternoon session, the
euro rose 0.2% to 89.92 pence EURGBP=D3 .
The dollar showed little reaction to U.S. economic data on
import prices and consumer sentiment released on Friday.
Currency bid prices at 3:01PM (1901 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1232 $1.1297 -0.58% +0.20% +1.1340 +1.1213
Dollar/Yen JPY= 107.4300 106.8500 +0.54% -1.31% +107.5400 +106.6000
Euro/Yen EURJPY= 120.69 120.73 -0.03% -1.03% +121.8000 +120.2700
Dollar/Swiss CHF= 0.9545 0.9440 +1.11% -1.37% +0.9553 +0.9437
Sterling/Dollar GBP= 1.2490 1.2600 -0.87% -5.80% +1.2653 +1.2475
Dollar/Canadian CAD= 1.3609 1.3624 -0.11% +4.80% +1.3666 +1.3527
Australian/Doll AUD= 0.6847 0.6854 -0.10% -2.48% +0.6911 +0.6800
ar
Euro/Swiss EURCHF= 1.0722 1.0666 +0.53% -1.20% +1.0727 +1.0656
Euro/Sterling EURGBP= 0.8991 0.8964 +0.30% +6.35% +0.8998 +0.8948
NZ NZD= 0.6430 0.6430 +0.00% -4.54% +0.6477 +0.6395
Dollar/Dollar
Dollar/Norway NOK= 9.6752 9.6200 +0.57% +10.22% +9.7274 +9.5103
Euro/Norway EURNOK= 10.8690 10.8700 -0.01% +10.48% +10.9335 +10.7814
Dollar/Sweden SEK= 9.3651 9.3179 -0.06% +0.19% +9.3922 +9.2350
Euro/Sweden EURSEK= 10.5229 10.5296 -0.06% +0.51% +10.5555 +10.4690