FOREX-US dollar strengthens as traders see resilient US economy

* Australian dollar, Chinese yuan rise against US dollar
* Euro, pound dragged down by strong greenback
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Olga Cotaga
LONDON, Feb 10 (Reuters) - A stronger U.S. dollar dragged
down the euro and the pound to their lowest levels in months as
investors expected the U.S. economy to remain resilient to the
spread of the coronavirus across the world, with payroll data
from last week reinforcing traders' optimism.
Market participants were more positive about riskier
currencies amid hints that the spread of the coronavirus could
be slowing down and as some big businesses resumed work in China
after the Lunar New Year break.
The Australian dollar AUD=D3 rose 0.3% to 0.6689 per U.S.
dollar, pulling away from a decade-low touched earlier in the
session. It has lost 4.5% this year. The Chinese yuan CNH=EBS
also rose 0.3% to 6.9893 per U.S. dollar.
The U.S. dollar, however, was stronger against other major
currencies.
It pushed the euro to match a four-month low of $1.0942
EUR=EBS and dragged the pound down to a 2-1/2-month low of
$1.2873 GBP=D3 .
Versus the euro, the pound was flat at 85.03 pence
EURGBP=D3 .
"The relative attractiveness of the U.S. dollar has been
boosted in the near-term by building concerns over the outlook
for growth outside of the U.S., the rising probability of
President (Donald) Trump winning a second term and further
evidence of the ongoing resilience of the U..S economy," said
Lee Hardman, currency analyst at MUFG.
"However, the Fed's reluctance to tighten policy should help
to dampen upside potential for U.S. yields and the U.S. dollar,"
Hardman said.
The safe-haven yen JPY= was trading neutral at 109.75 yen
per dollar, while bonds dipped and stock markets pared some
early losses with the broad appetite for risk. MKTS/GLOB
"We've seen positive headlines about a few large companies
all reporting that they were going to be resuming and reopening
facilities in China," said Richard Franulovich, head of FX
strategy at Westpac in Sydney.
Taiwan's Foxconn 2317.TW , a major contractor in global
technology production, received approval to resume production at
a plant in China's north, one person with knowledge of the
matter told Reuters. Carmaker Tesla's TSLA.O Shanghai factory was due resume
production on Monday, a government official said last week,
adding that authorities will provide assistance to the firm.