FOREX-Safe-haven yen weakens, Aussie outperforms as risk appetite improves

(Recasts with yen move, updates prices)
By Karen Brettell
NEW YORK, June 2 (Reuters) - The Japanese yen fell to a
seven-week low against the U.S. dollar on Tuesday and
higher-risk currencies including the Australian dollar jumped,
as risk appetite grew on optimism that the worst of the economic
downturn from the spread of the coronavirus is in the past.
U.S. stocks gained as cheer over business reopenings
overcame concerns about U.S.-China tensions and mass protests
across the United States over the death of an African-American
man in police custody. .N
“The good times continue to roll in risk markets,” Mazen
Issa, senior FX strategist at TD Securities, said in a report.
“As intense as the rally has been, this is likely set to
continue as the breadth of the equity rally has now spread
outside the U.S.”
The greenback gained 1.06% against the Japanese yen JPY=
to 108.72 yen, the highest since April 9.
The dollar index against a basket of major currencies =USD
fell 0.15% to 97.73 after going as low as 97.43, the lowest
since March 13.
The Australian AUD= dollar jumped 1.27% to $0.6883, after
reaching $0.6894, the highest since January 20.
Australia's central bank held rates at all-time lows on
Tuesday and sounded less gloomy as the economy gradually reopens
during what is likely to be the worst quarter since the Great
Depression of the 1930s. The euro was supported by expectations that the European
Central Bank will deliver more stimulus when it meets on
Thursday.
A 1.85-trillion euro ($2.04 trillion) fiscal package
proposed by the European Commission to lift the region's economy
eases the pressure to act speedily. Many economists nevertheless
expect the 750 billion Pandemic Emergency Purchase Programme
(PEPP) to increase by 500 billion euros. ABN Amro thinks it will
double in size. The single currency EUR= rose 0.27% to $1.1164 after
earlier reaching $1.1195, the highest since March 16.
Sterling GBP= climbed above $1.25 to its highest in a
month against the dollar on Tuesday, as signs that Britain might
be willing to compromise on sticking points in a fresh round of
Brexit negotiations with the European Union provided support.
Currency bid prices at 3:16PM (1916 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1164 $1.1134 +0.27% -0.40% +1.1195 +1.1116
Dollar/Yen JPY= 108.7200 107.5800 +1.06% -0.13% +108.7600 +107.5200
Euro/Yen EURJPY= 121.40 119.79 +1.34% -0.45% +121.6200 +119.6300
Dollar/Swiss CHF= 0.9625 0.9607 +0.19% -0.55% +0.9637 +0.9574
Sterling/Dollar GBP= 1.2536 1.2492 +0.35% -5.46% +1.2575 +1.2479
Dollar/Canadian CAD= 1.3526 1.3571 -0.33% +4.16% +1.3585 +1.3483
Australian/Doll AUD= 0.6883 0.6797 +1.27% -1.97% +0.6894 +0.6776
ar
Euro/Swiss EURCHF= 1.0749 1.0698 +0.48% -0.95% +1.0764 +1.0686
Euro/Sterling EURGBP= 0.8904 0.8911 -0.08% +5.32% +0.8921 +0.8867
NZ NZD= 0.6357 0.6291 +1.05% -5.63% +0.6368 +0.6264
Dollar/Dollar
Dollar/Norway NOK= 9.5624 9.6023 -0.42% +8.93% +9.6453 +9.5202
Euro/Norway EURNOK= 10.6772 10.7025 -0.24% +8.53% +10.7300 +10.6490
Dollar/Sweden SEK= 9.3448 9.3514 +0.16% -0.03% +9.3887 +9.3151
Euro/Sweden EURSEK= 10.4342 10.4179 +0.16% -0.33% +10.4630 +10.4190