FOREX-Dollar stands tall as coronavirus fears fuel rush for funding

* Aussie, kiwi hit multi-year lows vs greenback
* Cbank action eyed with ECB and BOE to hold USD dollar
operations
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Iain Withers
LONDON, March 18 (Reuters) - The dollar extended its gains
on Wednesday and hit new multi-year highs against both the
Australian and New Zealand dollars, as companies and investors
worried by the coronavirus outbreak rushed to the world's most
liquid currency.
As major currencies wilted against the greenback, the
Norwegian crown hit a new record low of $10.4564. NOK= , signs
of stress was everywhere as global central banks resumed their
efforts to keep money markets functioning normally.
The U.S. Federal Reserve said on Tuesday it would reinstate
a funding facility used during the 2008 financial crisis to get
credit directly to businesses and households. Both the European Central Bank and the Bank of England are
due to hold U.S. dollar auctions later on Wednesday, which are
likely to be closely watched. The Swiss central bank will also
meet and could direct further firepower at its economy.
"This is a story of a strong dollar. The Fed's action was
better than doing nothing, but at the same time the focus is on
signs of when this crisis will end," said Jane Foley, senior FX
strategist at Rabobank.
"Everyone understands the shortfalls of central banks. They
can't actually physically get people back through the doors of
shops."
Markets have crumbled this month as investors liquidated
nearly everything for cash - driving up the dollar's value and
the cost of borrowing the greenback abroad.
The U.S. dollar =USD was last up nearly 0.3% against a
basket of currencies, after hitting an almost three-year high in
earlier trading. It has gained more than 5% over the past two
weeks.
Export exposed currencies fared particularly badly versus
the greenback.
The Australian dollar sunk to a fresh 17-year low of
$0.59215 on Wednesday, while the New Zealand dollar hit a decade
low of $0.5850 cents.
Only perceived safe-haven currencies managed to hold their
ground against a strengthening greenback with the safe-haven yen
up around 0.2% to 107.42 yen JPY=EBS while the Swiss franc up
by a similar magnitude to $0.9598 francs.
"It all stems from a shortage of US dollars," said Gunter
Seeger, senior vice president in investment-grade fixed income
at New York asset manager PineBridge Investments.
"People are very, very nervous," Seeger said.
"Everyone's nervous about the virus, about oil prices, about
their job, about everything."