* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds details and investor comment, updates prices, previous
NEW YORK)
By Noel Randewich
June 25 (Reuters) - The U.S. dollar gained on Thursday due
to safety buying as fears grew over a rapid rise in coronavirus
infections in some U.S. states, and as trade tensions worsened
between the United States and the European Union.
The number of new daily cases around the country climbed to
a near-record high. Texas halted its phased
economic reopening in response to a jump in COVID-19 infections
and hospitalizations.
Over 36,000 new U.S. cases were recorded on Wednesday, a few
hundred shy of an April 24 record high, making investors more
pessimistic about the chances of a quick economic recovery.
“It's really fast accelerating in a lot of U.S. states,
which is going to continue to be a problem for markets,” said
Erik Nelson, a macro strategist at Wells Fargo in New York.
Data on Thursday showed weak demand is forcing U.S.
employers to lay off workers, keeping new applications for
unemployment benefits extraordinarily high, even as businesses
have reopened. New orders for U.S.-made capital goods rebounded more than
expected in May, but recouped only a portion of the prior two
months' declines. Forex markets have mostly tracked moves in equities as risk
sentiment changes. Wall Street was mixed on Thursday following
the S&P 500's .SPX worst day in two weeks. .N
The U.S. dollar index =USD was last up 0.18% on the day at
97.41.
A dispute between the United States and the European Union,
in which Washington is flagging possible changes in tariffs on
EU goods, also hurt risk sentiment. The euro slipped as riskier assets in the region, including
Italian bonds, weakened, and as the European Central Bank fought
back against a German court challenge to its money-printing
plans. "There's a little bit of unease going on in the European
financial markets, which is probably weighing on the euro," said
Nelson.
The ECB also said it will offer euro loans against
collateral to central banks outside the euro area to backstop
funding markets amid the coronavirus pandemic. The euro EUR was last down 0.32% at $1.1214.
The dollar gained 0.16% against the Japanese yen JPY= to
107.19 yen.
Some strategists pointed to a lack of momentum in currency
markets and said demand was being driven in part by investment
funds, corporations and other institutions making end-of-period
adjustments to their balance sheets.
"We are at month-end, quarter-end and half-year end, and
both corporations and institutions are rebalancing, and that is
driving the market in the short term," said Thomas Anderson,
managing director at moneycorp North America.
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Currency bid prices at 3:01 pm ET (1901 GMT)
Description RIC Last U.S. Close Pct YTD Pct High Bid Low Bid
Previous Change Change
Session
Euro/Dollar EUR= $1.1214 $1.1250 -0.32% +0.04% +1.1260 +1.1191
Dollar/Yen JPY= 107.1900 107.0200 +0.16% -1.53% +107.4500 +107.0000
Euro/Yen EURJPY= 120.22 120.42 -0.17% -1.42% +120.6200 +120.1500
Dollar/Swiss CHF= 0.9487 0.9477 +0.11% -1.97% +0.9507 +0.9475
Sterling/Dollar GBP= 1.2406 1.2418 -0.10% -6.43% +1.2464 +1.2390
Dollar/Canadian CAD= 1.3641 1.3637 +0.03% +5.04% +1.3670 +1.3607
Australian/Doll AUD= 0.6872 0.6872 +0.00% -2.12% +0.6889 +0.6848
ar
Euro/Swiss EURCHF= 1.0640 1.0664 -0.23% -1.95% +1.0676 +1.0636
Euro/Sterling EURGBP= 0.9036 0.9059 -0.25% +6.88% +0.9066 +0.9002
NZ NZD= 0.6421 0.6408 +0.20% -4.68% +0.6442 +0.6400
Dollar/Dollar
Dollar/Norway NOK= 9.6766 9.6627 +0.14% +10.23% +9.7374 +9.6445
Euro/Norway EURNOK= 10.8521 10.8830 -0.28% +10.31% +10.9360 +10.8329
Dollar/Sweden SEK= 9.3348 9.3473 -0.62% -0.13% +9.3826 +9.3167
Euro/Sweden EURSEK= 10.4715 10.5366 -0.62% +0.02% +10.5525 +10.4610