FOREX-Yen weakens, Aussie outperforms as risk sentiment improves

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Adds details, updates prices, new byline, changes dateline,
previous LONDON)
By Karen Brettell
NEW YORK, April 6 (Reuters) - The Japanese yen dipped and
the Australian dollar outperformed on Monday as risk appetite
improved on optimism that the spread of the novel coronaviurus
in the United States and Europe could be tapering, though an
outbreak in Japan worsened.
President Donald Trump expressed hope on Sunday that the
United States was seeing a “leveling-off” of the coronavirus
crisis in some hot spots, but some of his top medical advisers
took a more tempered view. France's daily death toll fell in the past 24 hours, Italy
reported its lowest daily COVID-19 death toll for more than two
weeks on Sunday and Spain's pace of new deaths slowed for the
fourth day on Monday. "Today's currency moves are following the risk-on playbook
closely,” analysts at Wells Fargo led by Erik Nelson said in a
report.
But Japan saw an increase in numbers. The country is to
impose a state of emergency in Tokyo and six other prefectures
as early as Tuesday to contain the coronavirus, while the
government prepares a $990 billion stimulus package to soften
the economic blow. "We think today's JPY weakness has more to do with the
strength in global equities than reports of a possible state of
emergency declaration in Tokyo,” Wells Fargo said.
The dollar gained 0.54% against the Japanese currency JPY=
to 109.04 yen.
The Australian dollar AUD= jumped 1.42% to $0.6080.
The euro, however, was subdued before euro zone finance
ministers were expected to converge on Tuesday on three quick
options to support the economy during the epidemic. Officials have until April 9 to design a package that
satisfies members with completely opposing views: those calling
for joint debt issuance and those fiercely against it.
The single currency EUR= dipped 0.08% against the dollar
to $1.0799.
Central bank actions have eased funding stresses that led to
a scramble for dollars in March. That has also helped reduce
bets that the greenback will book further gains, after the
dollar index hit a three-year high of 102.99 on March 20.
The index =USD traded at 100.71 on Monday, down 0.07% on
the day.
Speculators' net short U.S. dollar positioning in the latest
week touched its highest since May 2018. The cost of swapping euros and sterling for dollars in FX
swap markets fell on Monday to the lowest in over a decade, a
sign of success for central bank operations, though other
indicators imply some money market stress remains. Sterling was last up 0.24% at $1.2290 GBP= , after slipping
overnight on reports that Prime Minister Boris Johnson had been
hospitalized with persistent COVID-19 symptoms. ========================================================
Currency bid prices at 10:00AM (1400 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0799 $1.0808 -0.08% -3.67% +1.0834 +1.0769
Dollar/Yen JPY= 109.0400 108.4500 +0.54% +0.17% +109.3700 +108.3600
Euro/Yen EURJPY= 117.75 117.20 +0.47% -3.45% +118.3000 +117.2200
Dollar/Swiss CHF= 0.9776 0.9777 -0.01% +1.01% +0.9797 +0.9762
Sterling/Dollar GBP= 1.2290 1.2260 +0.24% -7.31% +1.2326 +1.2211
Dollar/Canadian CAD= 1.4135 1.4201 -0.46% +8.85% +1.4261 +1.4085
Australian/Doll AUD= 0.6080 0.5995 +1.42% -13.40% +0.6085 +0.5992
ar
Euro/Swiss EURCHF= 1.0558 1.0555 +0.03% -2.71% +1.0581 +1.0551
Euro/Sterling EURGBP= 0.8786 0.8799 -0.15% +3.93% +0.8855 +0.8766
NZ NZD= 0.5944 0.5869 +1.28% -11.76% +0.5948 +0.5851
Dollar/Dollar
Dollar/Norway NOK= 10.4390 10.5226 -0.79% +18.92% +10.5983 +10.4403
Euro/Norway EURNOK= 11.2730 11.4530 -1.57% +14.59% +11.4693 +11.2760
Dollar/Sweden SEK= 10.1426 10.1457 -0.49% +8.50% +10.2027 +10.1151
Euro/Sweden EURSEK= 10.9510 11.0050 -0.49% +4.60% +11.0284 +10.9423