FOREX-Dollar holds the upper hand as recovery doubts creep in

* Rising COVID-19 cases fuel second wave fears
* Grim IMF global growth forecast fuels demand for yen,
franc
* Dollar supported by safety bids
* Trade tensions weigh
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Julien Ponthus
LONDON, June 25 (Reuters) - The U.S. dollar edged higher on
Thursday as factors ranging from rising trade tensions to fears
of a second wave of coronavirus fuelled demand for safe-haven
currencies.
The dollar index advanced 0.1% to 97.30 .DXY but remained
below a 2020 high of near 103 in late March.
"A plethora of bad news about the virus led to a major
sell-off in risk assets yesterday as volatility returned to
financial markets once again", Deutsche Banks analysts said in a
note.
The euro retreated to $1.1242 EUR= . The British pound fell
to $1.2410 GBP=D4 .
A resurgence of COVID-19 cases from the United States to
Kyrgyzstan fuelled fresh fears that the V-shaped economic
recovery expected by the market was in jeopardy.
The International Monetary Fund slashed its 2020 global
output forecasts further, predicting more damage from the
pandemic than it had previously expected. Also souring the mood was news that Washington is
considering changing tariff rates for various European products
as part of the trading partners' aircraft dispute. dollar CAD=D4 weakened to a 10-day low versus the
U.S. dollar after it became the first country to lose its AAA
rating as a result of coronavirus-fuelled government spending.
"The far-reaching financial support the Canadian government
has provided to cushion the effects of the corona restrictions
have come at a price", Commerzbank analysts commented.
Commodity currencies, which had been supported by a rally in
oil and commodity prices, also fell. The Australian dollar
dropped for a second consecutive session to $0.6861 AUD=D4 .

(Reporting Julien Ponthus in London and Hideyuki Sano in Tokyp;
editing by Saikat Chatterjee, Larry King)