* Dollar recovers, adds more than 2% vs yen, 0.7% vs euro
* Commodity-linked currencies rebound but sentiment fragile
* Tracking the coronavirus: https://tmsnrt.rs/3aIRuz7
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(New throughout, updates prices, market activity and comments)
By Gertrude Chavez-Dreyfuss
NEW YORK, March 10 (Reuters) - The dollar posted sharp gains on Tuesday against the safe-haven
Japanese yen and Swiss franc, rebounding from the prior day's huge losses, as investors hoped global
monetary policymakers will launch further stimulus plans to ease the economic impact of the coronavirus
outbreak.
The U.S. stock market also rebounded Treasury yields rose across the board, as the market anticipated
a news conference by U.S. President Donald Trump on economic measures in response to the virus. Also,
indications of further stimulus efforts by some governments helped steady the market after Monday's
gyrations. Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington, said the
dollar's "cautiously improved tone today largely mirrors broader markets that anticipate tax cuts and
other fiscal steps from the Trump administration to help ease the economic blow from the virus."
Some analysts said it was too early to predict a floor for the dollar, which plunged on Monday after
an energy price war between Saudi Arabia and Russia triggered the biggest daily rout in oil prices since
the 1991 Gulf War, and Treasury yields dropped further.
Against a basket of currencies, the dollar rose 0.5% to 96.448 =USD . It rose 2.7% against the yen to
105.10 JPY=EBS , considerably higher than Monday's 101.18 low.
The yen also fell against the euro EURJPY=EBS and the Australian dollar AUDJPY=EBS , after Bank of
Japan officials indicated they were ready to ramp up stimulus if necessary, before a policy meeting next
week.
The euro dropped 1.4% versus the dollar to $1.1292 EUR=EBS , down from $1.1495 on Monday, its
strongest since early January.
The dollar rose 1.5% against the Swiss franc to 0.9388 franc CHF=EBS on Tuesday, recovering after
three days of heavy selling pushed it to its lowest in almost five years. Data suggest the Swiss National
Bank is now intervening to weaken its currency. Sterling GBP=D3 , meanwhile, fell 1.6% versus the U.S. currency to $1.2910.
Volatility has doubled in FX markets from the levels of late February, reaching its highest since
early 2017, according to one index .DBCVIX .
Analysts said FX volatility, which has not jumped to the same extent as in equity markets, could rise
further.
Commodity-linked currencies that tumbled on Monday following the crash in oil prices recovered
slightly. The Norwegian crown added 1.3% versus the euro to 10.80 EURNOK=D3 , away from record lows but
still off the 10.4 levels seen last week.
The Canadian dollar slipped 0.5% against the greenback, which rose to C$1.3736 CAD=D3 .
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Currency bid prices at 2:59PM (1859 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1294 $1.1447 -1.34% +0.75% +1.1458 +1.1287
Dollar/Yen JPY= 105.0800 102.3400 +2.68% -3.46% +105.2800 +102.0200
Euro/Yen EURJPY= 118.70 117.02 +1.44% -2.67% +119.3400 +116.8300
Dollar/Swiss CHF= 0.9382 0.9250 +1.43% -3.06% +0.9398 +0.9247
Sterling/Dollar GBP= 1.2913 1.3131 -1.66% -2.61% +1.3132 +1.2896
Dollar/Canadian CAD= 1.3735 1.3701 +0.25% +5.77% +1.3796 +1.3608
Australian/Doll AUD= 0.6488 0.6586 -1.49% -7.59% +0.6613 +0.6464
ar
Euro/Swiss EURCHF= 1.0599 1.0578 +0.20% -2.33% +1.0646 +1.0576
Euro/Sterling EURGBP= 0.8745 0.8720 +0.29% +3.45% +0.8780 +0.8682
NZ NZD= 0.6261 0.6334 -1.15% -7.05% +0.6359 +0.6245
Dollar/Dollar
Dollar/Norway NOK= 9.5903 9.5737 +0.17% +9.25% +9.6336 +9.4602
Euro/Norway EURNOK= 10.8436 10.9549 -1.02% +10.22% +10.9880 +10.7280
Dollar/Sweden SEK= 9.5275 9.4385 -0.41% +1.94% +9.5452 +9.4175
Euro/Sweden EURSEK= 10.7656 10.8095 -0.41% +2.83% +10.8131 +10.7190
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Deutsche Bank Currency Volatility Index https://tmsnrt.rs/2vKAQj3
FACTBOX: Economic remedies for coronavirus outbreak's impact ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>