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FOREX-Dollar rises from four-week low as U.S. stocks end mixed

Published 07/10/2020, 04:20 AM
Updated 07/10/2020, 04:30 AM
© Reuters.
US500
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DJI
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DX
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* NY prosecutor can get Trump's financial records -Supreme Court
* Euro falls from 1-month high vs dollar
* Chinese yuan rises to four-month peak vs dollar
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

(Adds Nasdaq closing at new record high, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, July 9 (Reuters) - The dollar climbed from a four-week low on Thursday, as a decline in U.S.
stocks enhanced the currency's safe-haven appeal for investors following a surge in new coronavirus cases
and a U.S. Supreme Court ruling on President Donald Trump's financial records.
The euro fell from a one-month high versus the dollar, while commodity currencies, which tend to rise
when risk appetite increases, also slid against the greenback.
The dollar rally coincided with the Supreme Court ruling on Thursday that a New York prosecutor can
obtain Trump's financial records, analysts said. But it did prevent, for now, the Democratic-led House of
Representatives from obtaining the same records. "The dollar over the last few weeks has been trading on risk-taking levels and taken on its role as a
safe haven," said Ronald Simpson, managing director, global currency analysis at Action Economics in
Florida.
"The Supreme Court ruling had a big impact on everything: the dollar rose, (Treasury) yields fell, and
stocks got slammed. It puts some risk on Trump right now that something bad may come out," he added.
Earlier in the global session, the dollar struggled, with the Chinese yuan climbing to a four-month
peak, as investors increased positions in Chinese stocks on growing signs of a recovery in the world's
second-largest economy.
Market sentiment turned, however, during the U.S. session. Another contributing factor, apart from the
Supreme Court decision, was the renewed surge in COVID cases.
More than 60,000 new COVID-19 infections were reported on Wednesday, the greatest single-day tally of
cases by any country since the virus emerged late last year in China. U.S. deaths rose by more than 900
for the second straight day. U.S. stocks ended mixed on Thursday, with the Nasdaq hitting another record closing high. The dollar
continues to move inversely to stocks and risk appetite.
Analysts believed though that despite losses in the S&P 500 .SPX and the Dow Jones index .DJI ,
stocks should remain well-supported on dips.
"The risk backdrop should remain more or less positive for the foreseeable future, given the global
fiscal and monetary policy setting," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto.
In late afternoon trading, the dollar index rose 0.4% to 96.816 =USD , after falling to a four-week
low of 96.233.
The euro dropped 0.4% to $1.1279, sliding after hitting a one-month high around $1.1371 hit earlier
in the day EUR=EBS even after German export data failed to meet analysts' expectations. The Chinese yuan soared to a four-month high of 6.9808 in the offshore market and was last little
changed against the dollar at 6.9968 CNH=EBS .
The dollar was flat against the yen at 107.20 yen JPY=EBS and was up 0.3% versus the Swiss franc at
0.9405 franc CHF=EBS .

========================================================
Currency bid prices at 4:13PM (2013 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1279 $1.1329 -0.44% +0.62% +1.1370 +1.1281
Dollar/Yen JPY= 107.1900 107.2500 -0.06% -1.53% +107.3900 +107.1100
Euro/Yen EURJPY= 120.91 121.51 -0.49% -0.85% +121.9600 +120.9200
Dollar/Swiss CHF= 0.9407 0.9381 +0.28% -2.80% +0.9407 +0.9363
Sterling/Dollar GBP= 1.2604 1.2609 -0.04% -4.94% +1.2669 +1.2601
Dollar/Canadian CAD= 1.3587 1.3510 +0.57% +4.63% +1.3594 +1.3491
Australian/Doll AUD= 0.6959 0.6982 -0.33% -0.88% +0.7000 +0.6951
ar
Euro/Swiss EURCHF= 1.0611 1.0630 -0.18% -2.22% +1.0647 +1.0611
Euro/Sterling EURGBP= 0.8949 0.8982 -0.37% +5.86% +0.9000 +0.8947
NZ NZD= 0.6563 0.6574 -0.17% -2.57% +0.6600 +0.6553
Dollar/Dollar
Dollar/Norway NOK= 9.4659 9.3754 +0.97% +7.83% +9.4693 +9.3432
Euro/Norway EURNOK= 10.6813 10.6310 +0.47% +8.55% +10.6934 +10.6084
Dollar/Sweden SEK= 9.2357 9.1726 +0.21% -1.20% +9.2365 +9.1481
Euro/Sweden EURSEK= 10.4205 10.3988 +0.21% -0.47% +10.4268 +10.3762

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Yuan strengthens https://tmsnrt.rs/2W1vYzF
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