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FOREX-Dollar, safe-haven currencies buoyed by U.S. coronavirus anxiety

Published 07/10/2020, 08:53 AM
Updated 07/10/2020, 09:00 AM
© Reuters.
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* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Hideyuki Sano
TOKYO, July 10 (Reuters) - The dollar and other safe-haven
currencies were well bid on Friday after a surge in new
coronavirus cases in the United States further undermined the
case for a quick economic recovery.
More than 60,000 new COVID-19 infections were reported
across the United States on Wednesday, the greatest single-day
tally by any country in the pandemic so far, discouraging some
American consumers to return to public spaces. The caution helped to lift the dollar index .DXY to 96.798
from near one-month low of 96.233 touched on Thursday.
The euro fell to $1.1288 EUR= , slipping back after having
scaled a one-month high of $1.1371 on Thursday.
Against the safe-haven yen, the dollar traded at 107.20 yen
JPY= , having touched its lowest level in 10 days in the
previous trade.
The Swiss franc also strengthened to its highest level in
six weeks against the euro, to 1.0609 franc per euro EURCHF= .
Against the dollar, the franc changed hands at 0.9407 per
dollar CHF= after having touched a four-month high of 0.93625
to the dollar.
"The market was in a mild risk-off mood, following pretty
bad coronavirus figures from Florida," said Kyosuke Suzuki,
director of currencies at Societe Generale.
Some market players also said a U.S. Supreme Court ruling
that a New York prosecutor can obtain President Donald Trump's
financial records could have undermined risk sentiment and
boosted dollar as he faces an uphill battle for re-election.
Trump has fought tenaciously to keep his tax returns and
other elements of his finances secret.
Many risk-sensitive currencies took a step back following
their rally in recent weeks.
The Australian dollar stood at $0.69605 AUD=D4 , off
Thursday's one-month high of $0.7001.
Commodity currencies lost traction also as oil prices dipped
on worries about the renewed lockdowns in some parts of the
United States.
The yuan, which often tends to align with risk-sensitive
currency groups, bucked the trend, supported by hopes of capital
inflows as Chinese shares prices have surges after Beijing
indicates it wants a healthy bull market.
The offshore yuan traded at 6.999 yuan per dollar CNH= ,
down about 0.03% in early Asian trade, having touched
near-four-month high of 6.9808 on Thursday.

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