* 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
(Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, March 10 (Reuters) - The dollar rallied on Tuesday after huge losses against the safe-haven
Japanese yen and Swiss franc, amid investor hopes that global monetary policymakers will make further
stimulus efforts to mitigate the economic impact of the coronavirus outbreak.
The greenback's recovery coincided with a rebound in the U.S. stock market and bounce in Treasury
yields across the board, following U.S. President Donald Trump's announcement that he would hold a news
conference on Tuesday about economic measures in response to the virus.
Indications of further stimulus efforts by some governments helped reverse some of Monday's gyrations,
but at 104 yen per dollar the Japanese currency was not back above the 105 seen before this week.
"This crisis caused by the coronavirus is pushing central banks and governments to spend money and
that's a good thing for the market," said Juan Perez, senior currency trader at Tempus Inc. in Washington.
"That's what the world wanted, not so much a cut in interest rates or quantitative easing. That why I
feel the dollar will come back and recover," he added.
Analysts said though 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 95.865 =USD . It rose 2% against the yen to
104.46 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 0.8% versus the dollar to $1.1354 EUR=EBS , down from $1.1495 on Monday, its
strongest since early January.
The dollar rose 0.9% against the Swiss franc to 0.9332 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 0.7% versus the U.S. currency to $1.3020.
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 0.2% against the greenback, which edged up 2% to C$1.3694 CAD=D3 .
========================================================
Currency bid prices at 10:29AM (1429 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1358 $1.1447 -0.78% +1.32% +1.1458 +1.1333
Dollar/Yen JPY= 104.3700 102.3400 +1.98% -4.12% +105.2400 +102.0200
Euro/Yen EURJPY= 118.56 117.02 +1.32% -2.78% +119.3400 +116.8300
Dollar/Swiss CHF= 0.9327 0.9250 +0.83% -3.63% +0.9373 +0.9247
Sterling/Dollar GBP= 1.3006 1.3131 -0.95% -1.91% +1.3132 +1.3006
Dollar/Canadian CAD= 1.3704 1.3701 +0.02% +5.53% +1.3706 +1.3608
Australian/Doll AUD= 0.6538 0.6586 -0.73% -6.88% +0.6613 +0.6539
ar
Euro/Swiss EURCHF= 1.0595 1.0578 +0.16% -2.37% +1.0646 +1.0576
Euro/Sterling EURGBP= 0.8731 0.8720 +0.13% +3.28% +0.8746 +0.8682
NZ NZD= 0.6308 0.6334 -0.41% -6.35% +0.6359 +0.6288
Dollar/Dollar
Dollar/Norway NOK= 9.5349 9.5737 -0.41% +8.62% +9.5911 +9.4602
Euro/Norway EURNOK= 10.8317 10.9549 -1.12% +10.10% +10.9880 +10.7280
Dollar/Sweden SEK= 9.4803 9.4385 -0.39% +1.42% +9.4987 +9.4175
Euro/Sweden EURSEK= 10.7676 10.8095 -0.39% +2.85% +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 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>