* Yen, Swiss franc rise on U.S. dollar profit-taking
* New Zealand dollar rises to four-month high
* Focus on U.S. Fed meeting this week
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Adds comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, June 8 (Reuters) - The U.S. dollar fell and
commodity currencies gained on Monday, as risk appetite
increased on optimism about recovery from the coronavirus
pandemic amid a blockbuster May U.S. jobs report last Friday.
The safe-haven Japanese yen rose against the dollar,
reversing losses the past several days as risk sentiment gained
with growing recovery hopes.
"There has been this unwinding of negativity since the last
week of May, particularly negative U.S.-China bets," said Erik
Bregar, head of FX strategy, at Exchange Bank of Canada in
Toronto.
Commodity currencies such as the Australian, New Zealand,
and Canadian dollars were well-bid. The New Zealand dollar, for
one, climbed to its highest in four months after New Zealand
said it had stopped transmission of the coronavirus within the
country.
New Zealand Prime Minister Jacinda Arden on Monday said the
country would lift all virus-containment measures apart from
border controls, making it one of the first countries to do so.
But as the United States and economies around the world
reopen, there have been nagging doubts as to where the recovery
is headed.
"The UK, for instance, plans to reopen and one of the things
to consider is Brexit," said Juan Perez, currency trader at
Tempus Inc in Washington.
"Once we establish that Brexit is one of those 2019 issues
that needs to be resolved, we could see the major rally in the
euro come under pressure because the market may focus once again
on what type of partnership Europe would have with the UK," he
added.
In afternoon trading, the dollar index dipped 0.1% to
96.641 =USD in choppy trading, after having gained overnight.
The dollar fell sharply against the yen, down 1.1% at 108.33
JPY=EBS . It also dropped 0.6% against Swiss franc, another
safe haven, to 0.9566 CHF=EBS .
The euro was higher against the dollar despite data showing
German industrial output plunged the most on record in April as
the pandemic forced companies in Europe's largest economy to
scale back production. The euro was last up 0.2% at $1.1303 EUR=EBS . It reached a
three-month high of $1.1384 last week after the European Central
Bank announced it was expanding its stimulus program.
The New Zealand dollar rose 0.8% versus the greenback to
US$0.6560, earlier hitting a high of US$0.6564, its strongest
since late January NZD=D3 . The Australian dollar also rose
0.7% to US$0.7017 AUD=D3 , with the Canadian dollar also
rising, trading 0.4% higher at C$1.3366 per U.S. dollar.
Investors are now focused on the U.S. Federal Reserve policy
meeting this week. The Fed will need to balance signs that
economic fallout from the pandemic is past its worst against
evidence the virus itself is not yet under control. Currency bid prices at 3:13PM (1913 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1301 $1.1284 +0.15% +0.81% +1.1319 +1.1269
Dollar/Yen JPY= 108.3300 109.5800 -1.14% -0.49% +109.6900 +108.2500
Euro/Yen EURJPY= 122.43 123.71 -1.03% +0.39% +124.1200 +122.2300
Dollar/Swiss CHF= 0.9568 0.9624 -0.58% -1.14% +0.9639 +0.9557
Sterling/Dollar GBP= 1.2722 1.2663 +0.47% -4.05% +1.2729 +1.2629
Dollar/Canadian CAD= 1.3360 1.3424 -0.48% +2.88% +1.3436 +1.3362
Australian/Doll AUD= 0.7017 0.6968 +0.70% -0.06% +0.7020 +0.6963
ar
Euro/Swiss EURCHF= 1.0814 1.0860 -0.42% -0.35% +1.0889 +1.0802
Euro/Sterling EURGBP= 0.8881 0.8911 -0.34% +5.05% +0.8928 +0.8882
NZ NZD= 0.6558 0.6506 +0.80% -2.64% +0.6564 +0.6502
Dollar/Dollar
Dollar/Norway NOK= 9.2665 9.2845 -0.19% +5.56% +9.3127 +9.2409
Euro/Norway EURNOK= 10.4728 10.5093 -0.35% +6.45% +10.5189 +10.4440
Dollar/Sweden SEK= 9.1999 9.1673 +0.31% -1.58% +9.2311 +9.1536
Euro/Sweden EURSEK= 10.3987 10.3663 +0.31% -0.67% +10.4257 +10.3557
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