FOREX-Safe-haven yen, Swiss franc slide for 2nd day as risk appetite grows

* Risk appetite picks up; markets monitor coronavirus
* Yen, Swiss franc drops
* Offshore yuan, Australian dollar rise
* Markets brace for more Chinese measures to ease virus impact
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Recasts, adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Feb 4 (Reuters) - The safe-haven yen and Swiss franc fell for a second straight session
against the U.S. dollar on Tuesday, with risk appetite growing as investors were encouraged that the
Chinese government was taking measures to contain the coronavirus and limit its economic fallout.
Currencies such as the Australian dollar and offshore Chinese yuan climbed.
The People's Bank of China (PBOC) has pumped in hundreds of billions of dollars into the financial
system this week. In the past two days, the PBOC has injected 1.7 trillion yuan ($242.74 billion) through
open market operations. "It feels like the containment measures and getting more information about the virus have helped the
market and so investors are not so worried about uncertainty," said Thomas Anderson, managing director at
moneycorp North America.
"I think people overreacted last week and now they're unwinding that overreaction," he added.
"China pretty much jumped into everything they needed to do to stabilize the market and it worked."
Still, the death toll from the virus epidemic climbed to 427, infecting 20,438 in China. There have
been nearly 200 cases elsewhere across 24 countries. Also, the outbreak is expected to have a
devastating impact on first-quarter growth, policy sources said. In late morning trading, the dollar rose 0.5% against the yen to 109.26 yen JPY= , and gained 0.3%
versus the Swiss franc to 0.9690 franc CHF= .
Gains against the yen and franc helped push the dollar index higher to 97.922 .DXY , up 0.1% on the
day.
In U.S. politics, Democratic Party officials blamed "inconsistencies" for an indefinite delay in
Iowa's caucus results. A victory by left-leaning Bernie Sanders or Elizabeth Warren could
hurt shares and boost safe-haven currencies.
The euro, meanwhile, slipped 0.1% against the dollar to $1.1040 EUR= .
The Australian dollar rose 0.5% to US$0.67285 AUD=D3 , pulling away from a 10 1/2-year low of $0.6670
touched last October, after the Reserve Bank of Australia left its main cash rate unchanged at 0.75%.
The offshore yuan rose against the dollar, which fell 0.3% to 6.9935 CNH= .
Elsewhere, sterling rebounded from a near-six week low against the U.S. dollar to trade 0.3% higher
at $1.3028. GBP=D3 Sterling has been under pressure from worries over a hard Brexit amid a tough stance
https://www.reuters.com/article/uk-britain-eu/sovereignty-comes-first-britain-lays-out-tough-stance-for-eu-trade-talks-idUSKBN1ZW0I2
taken by Prime Minister Boris Johnson on European Union trade talks. Currency bid prices at 10:39 AM (1539 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1035 $1.1058 -0.21% -1.56% +1.1064 +1.1037
Dollar/Yen JPY= 109.3200 108.6700 +0.60% +0.42% +109.3500 +108.5600
Euro/Yen EURJPY= 120.66 120.19 +0.39% -1.07% +120.7100 +120.0700
Dollar/Swiss CHF= 0.9695 0.9657 +0.39% +0.19% +0.9699 +0.9657
Sterling/Dollar GBP= 1.3033 1.2993 +0.31% -1.70% +1.3046 +1.2942
Dollar/Canadian CAD= 1.3277 1.3284 -0.05% +2.24% +1.3301 +1.3266
Australian/Doll AUD= 0.6725 0.6691 +0.51% -4.22% +0.6734 +0.6680
ar
Euro/Swiss EURCHF= 1.0701 1.0683 +0.17% -1.39% +1.0717 +1.0682
Euro/Sterling EURGBP= 0.8466 0.8509 -0.51% +0.14% +0.8537 +0.8468
NZ NZD= 0.6466 0.6460 +0.09% -4.01% +0.6476 +0.6450
Dollar/Dollar
Dollar/Norway NOK= 9.2305 9.2793 -0.53% +5.15% +9.2871 +9.2177
Euro/Norway EURNOK= 10.1883 10.2660 -0.76% +3.56% +10.2738 +10.1790
Dollar/Sweden SEK= 9.6054 9.6479 -0.67% +2.76% +9.6550 +9.5944
Euro/Sweden EURSEK= 10.6011 10.6722 -0.67% +1.26% +10.6754 +10.5960