* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Updates prices, adds comment, chart)
By Iain Withers
LONDON, April 16 (Reuters) - The dollar consolidated its
gains against other currencies on Thursday before the release of
weekly U.S. jobless data likely to provide more evidence of the
world's biggest economy hurtling into a deep recession.
The dollar rose 0.2% to 99.808 to a one-week high against a
basket of major currencies =USD , after snapping a four-day
losing streak the previous day as equity market gains fizzled.
While stabilising oil prices and some improvement in risk
sentiment on stock markets helped temper the dollar's gains,
economists were counting the extent of the damage to the world
economy from weeks of enforced lockdowns. O/R
Economists forecast U.S. weekly jobless claims of 5.1
million, lifting total filings during the crisis above 20
million. Dire U.S. retail and factory data and a nosedive in oil
prices to 18-year lows on Wednesday strengthened the dollar
across the board. The greenback has gained broadly during the crisis as
investors scrambled for the safety of the world's reserve
currency, although it is down from its late-March highs since
the U.S. Federal Reserve unleashed a stream of measures to
support the economy.
"In the short term, the dollar is expected to remain firm
because of its safe-haven status and as the global economic
situation remains uncertain," said Andrew Wilson, chairman of
global fixed income, Goldman Sachs Asset Management.
"We expect the dollar to underperform in the medium term as
economies start to recover."
U.S. President Donald Trump is due to announce guidelines on
re-opening the country's economy at a press conference later on
Thursday. The euro resumed its drop versus the dollar, down a third of
a percent at $1.08775 EUR=EBS as a half-trillion-euro
compromise deal struck between euro zone governments last week
to support countries through the coronavirus outbreak is widely
seen as insufficient, especially for debt-laden Italy.
"The market has finally come to the conclusion that what the
euro group delivered was not enough," said Ulrich Leuchtmann,
head of FX and commodity research at Commerzbank.
"This shows that the European Central Bank is still in a
permanent role to prevent a Eurozone crisis, which is not a good
situation to be in."
The yen weakened 0.2% against the dollar, as media reports
suggested Japan was preparing to extend a state of emergency
beyond major cities to the entire nation. JPY=EBS The dollar rose against currencies considered riskier bets,
edging up against the British pound and Australian and New
Zealand dollars. GBP=D3 AUD=D3 NZD=D3
Oil currencies paused after Wednesday's selloff on the
stabilising oil price, with the Norwegian crown and Canadian
dollar broadly flat against the dollar. NOK= CAD=
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