FOREX-Dollar supported as investors seek safety in liquidity

* Dollar broadly supported as investors want liquid currency
* Safe-haven yen supported, near 2-week high vs dollar
* Emerging market currencies battered
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Hideyuki Sano
TOKYO, April 2 (Reuters) - The dollar held gains on Thursday
as investors rushed to the security of the world's most liquid
currency as the coronavirus pandemic caused massive disruptions
to global trade.
The dollar index against a basket of major six currencies
=USD gained 0.53% overnight as the U.S. currency advanced
against most of its major peers except for the safe-haven yen.
In early Thursday trade, the euro was little changed at
$1.0959 EUR= after 0.69% fall on Wednesday. Sterling fetched
$1.2382 GBP=D4 , having lost 0.40% on Wednesday.
The Australian dollar changed hands at $0.6080 AUD=D4 ,
having dropped 0.99% in the previous session.
The dollar traded at 107.15 yen JPY= after it touched a
two-week low of 106.925 on Wednesday.
Markets were spooked after U.S. President Donald Trump's
dire press briefing late Tuesday, in which he warned Americans
of a "painful" two weeks ahead in fighting the coronavirus even
with strict social distancing measures. "If America's optimistic president is warning the worst of
the pandemic is yet to come, what factory in their right mind
would keep the doors open and workers on the payroll?" asked
Chris Rupkey, chief financial economist at MUFG Union Bank in
New York.
"With only a few actual data points so far, the results
indicate this is looking more like a depression than a
garden-variety recession."
The starkest evidence of the damage came last week when
weekly U.S. initial jobless claims, one of the earliest gauges
of economic trends, jumped to 3.28 million, blowing past the
previous record of 695,000 set in 1982. The next jobless claims data release due at 1230 GMT on
Thursday is expected to show another 3.50 million applications
during last week.
Economists' forecast in Reuters poll range from 1.5 million
to 5.25 million.
"As we've seen yesterday, a deterioration in the U.S.
economic outlook is likely to lead to strength in the yen
against the U.S. dollar," said Shin-ichiro Kadota, senior
strategist at Barclays.
The pandemic has shown few signs of abating with global
cases on track to hit one million within a day or two,
stretching over more than 200 countries. Some vulnerable emerging market currencies have come under
extreme pressure as wide current account deficits, low credit
ratings and limited foreign currency reserves heighten capital
flight risks.
The Brazilian real BRL= and the South African rand
ZAR=D4 both hit record lows while the Turkish lira TRYTOM=D4
sank to a two-year low.