FOREX-Dollar rises as virus worries hurt risk appetite

* Dollar index rises 0.15%
* Pound near 3-week highs before government releases
spending
plans

(Updates to U.S. afternoon)
By Saqib Iqbal Ahmed
NEW YORK, July 7 (Reuters) - The U.S. dollar rose against a
basket of currencies on Tuesday, holding above the near two-week
low hit in the previous session, as investors turned uneasy over
new coronavirus flare-ups and local lockdowns in some countries.
The U.S. Dollar Currency Index =USD , which measures the
greenback's strength against six major currencies, was 0.15%
higher at 96.889. On Monday, the index had fallen as low as
96.565 with its 50-day moving average slipping below its 200-day
average, viewed as a bearish signal.
"There was no data to move markets, though Wall Street
posted losses as investors have a rethink, at least for now, on
the economic growth outlook, as COVID hot spots continue to slow
reopenings around the world," Ronald Simpson, managing director,
global currency analysis at Action Economics, said in a note.
The dollar, viewed as a safe haven, benefits when investors
bail on riskier assets.
Riskier currencies such as the commodity-driven Aussie
AUD=D3 , Norwegian crown NOK=D3 and the Swedish crown
SEK=D3 , which have rallied strongly since April alongside
increased risk appetite in global markets, eased on Tuesday.
Lockdown measures were reimposed in Australia's second
biggest city on Tuesday, confining Melbourne residents to their
homes unless undertaking essential business for six weeks.
In the United States, Florida's greater Miami area became
the latest hotspot to roll back its reopening as virus cases
surged nationwide by the tens of thousands and the U.S. death
toll topped 130,000. U.S. health official Anthony Fauci said on Monday that the
current state of the COVID-19 outbreak in the United States "is
really not good." The surge in U.S. coronavirus cases has made business
owners "nervous again," Atlanta Federal Reserve president
Raphael Bostic said on Tuesday. Sterling was 0.51% higher on optimism that British and
European Union trade negotiators could find common ground at a
dinner planned for later in the day. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC: Dollar death cross https://tmsnrt.rs/2BBUUqM
GRAPHIC: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
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