FOREX-Dollar steadies as overnight risk-off move eases

(New throughout; changes dateline, previous LONDON)
By Kate Duguid
NEW YORK, June 15 (Reuters) - The U.S. dollar was slightly
lower in North American morning trade on Monday, stabilizing
after a move higher overnight on a sell-off in risk assets over
rising fears of a second wave of coronavirus infections.
The dollar index =USD , which measures the U.S. currency
against a basket of six rivals, was 0.12% lower at 97.060.
Still, the dollar remained far above last week's three-month
low, and risk assets broadly remained higher as fears of rising
infections drove investors into safe havens like the dollar.
Against the euro EUR= it was 0.06% weaker to $1.126 and
against the British pound GBP= it was 0.10% weaker to $1.255.
The U.S. S&P 500 index .SPX was last down 0.85%, steadying
after earlier in the session hitting its lowest since May 22.
China reintroduced restrictions in some areas after Beijing
reported its biggest cluster of new infections since February.
In the United States, more than 25,000 new cases were reported
on Saturday alone. "We're focusing on the second wave of infections. There are
already 20 states or so that are spiking, but also the new cases
in Tokyo, and perhaps more alarming, in Beijing. That's a reason
to sell off stocks," said John Doyle, vice president of dealing
and trading at Tempus Inc.
Doyle, however, also said that the dollar's strength since
its bottom on Wednesday was less about fundamentals and more of
a recalibration following an overblown recovery in risk. Since
the Federal Reserve pledged unprecedented support to bolster
financial markets hard-hit by the coronavirus pandemic, U.S.
stocks jumped to near where they started the year.
"Dollar weakness - but also equity strength - was maybe
overdone at the beginning of June, so we're trying to find new
ranges in both," said Doyle.
"We think the trend is towards dollar weakness, but in the
near-term, I think we're going to be settling into some ranges
before it loses more."
Understanding the broader move higher in the dollar since
last Wednesday as a recalibration also helps explain why the
safe-haven Japanese yen had been strengthening against the
dollar. On Monday it was slightly weaker at 107.38 yen to the
dollar JPY= . <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
ANALYSTS' VIEW-Market jitters over second COVID-19 wave are an
overdue pullback ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>