FOREX-Dollar slips against commodity currencies as Brent surges

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar down vs Russian rouble, Mexican peso and Norwegian
crown
* Oil turmoil rattles FX market
* Coronavirus threatens global energy demand
* Euro knocked by French PMIs
* Investors looks to EU policymakers for fiscal response

By Tom Wilson
LONDON, April 23 (Reuters) - The dollar slipped against the
currencies of oil-producing states on Thursday, giving up
earlier gains as a bounce in crude prices gave succour to
markets shaken by the massive coronavirus-induced drop in
demand.
As Brent crude LCOc1 surged on signs producers were
cutting production to address collapsing demand for fuel, the
greenback fell 1% against the Russian rouble to 75.19 RUB= .
It also dropped 0.5% against the Norwegian crown NOK= to
10.7061, pulling back from a one-month high reached a day
earlier. Against the Mexican peso MXN=D3 it slipped 0.6% to
24.4990, retreating from a two-week high hit earlier.
The gains for oil came as major economies have been brought
to a virtual standstill, with severe restrictions on businesses
and travel aimed at limiting the spread of the coronavirus
hitting commodity currencies.
In volatile trading, Brent crude LCOc1 soared as much as
15%, bouncing back from its lowest level since June 1999. It was
last up 6.6% at $21.72 a barrel. O/R
"The price of crude oil has staged a relief rally after
coming under intense selling pressures," said Lee Hardman,
currency analyst at MUFG. "It has resulted in the US dollar
weakening most notably against oil-related currencies."
The euro slipped against the dollar EUR=EBS after French
business activity hit a record low, with the single currency
losing 0.3% to fall below $1.08 for the first time in 2-1/2
weeks. It was last at 1.0785. Investors also awaited euro zone PMI data, due at 0800 GMT.
The French data rattled the euro ahead of a meeting of
European Union officials on the bloc's response to the economic
turmoil caused by the global coronavirus pandemic.
Markets are wary given uncertainty over how far EU
governments will cooperate in financing the recovery from what
is sure to be a deep recession. Ahead of the outcome of the meeting, the euro was down 0.2%
against the pound EURGBP=D3 at 87.60 pence.
The European Central Bank has agreed to accept junk bonds as
collateral to allow banks to finance themselves at the ECB,
which should be a positive factor for the euro, but investors
are waiting for details on the fiscal response. The dollar was flat against a basket of currencies =USD ,
lasting trading at 100.540.

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