FOREX-Dollar shines as virus, economy woes hit risk assets

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar rallies this week against most currencies
* Risk assets in retreat due to coronavirus concerns
* Signs of stuttering global economy hurt sentiment
* Euro looks to Ifo survey amid growing economic gloom

By Stanley White
TOKYO, Sept 24 (Reuters) - The dollar extended gains against
most currencies on Thursday as signs of economic slowdown in
Europe and the United States renewed concern about a second wave
of coronavirus infections.
The euro, which has already taken a hit due to worries about
a return to severe lockdown restrictions, faces an additional
hurdle later on Thursday with the release of data on German
business sentiment.
The dollar is likely to continue to rise as another spike in
coronavirus cases and the Federal Reserve's warnings that the
U.S. economy needs more fiscal stimulus cause investors to
repatriate funds from riskier assets.
"Risk is being sold across the board, and there is a big
unwinding of dollar shorts," said Yukio Ishizuki, foreign
exchange strategist at Daiwa Securities.
"Questions surrounding the coronavirus and the need for even
more stimulus are turning flows back to the dollar."
The dollar traded at $1.1658 per euro EUR=D3 on Thursday
in Asia, just shy of a two-month low high reached on Wednesday.
The pound GBP=D3 bought $1.2714, near its weakest level
since late July.
The dollar was quoted at 0.9240 Swiss franc CHF=EBS , which
is near a nine-week high.
The U.S. currency bought 105.40 yen JPY=D3 , holding onto a
0.4% gain from the previous session.
The dollar has rallied this week as rising coronavirus
infections in Europe and Britain undermined investor optimism
about vaccine progress.
The Ifo survey due later on Thursday is forecast to show an
improvement in business morale in Germany, Europe's largest
economy.
However, sentiment for the euro has already suffered a big
blow after surveys released on Wednesday showed new restrictions
to quell a resurgence in coronavirus infections slammed the euro
zone's services industry into reverse. The mood for riskier assets has also soured after data on
Wednesday showed U.S. business activity slowed in September and
several Fed policymakers warned that further government aid is
needed to bolster the economy. The dollar index =USD , which pits the dollar against a
basket of six major currencies, stood at 94.336 on Thursday,
close to a nine-week high.
There are no major economic data releases scheduled during
the Asian session, so trading could be subdued, analysts said.
Some investors are watching the Australian and New Zealand
dollars, which have come under pressure due to growing
expectations for additional monetary easing.
A recent decline in commodity prices is expected to increase
downside risks for the Antipodean currencies, some traders say.
The Aussie AUD=D3 traded at $0.7069, near its weakest
since July 21.
Across the Tasman Sea, the kiwi NZD=D3 bought $0.6549
after tumbling by 1.3% in the previous session.