In the News

U.S. dollar posts modest gains on renewed virus fears

NEW YORK, June 30 (Reuters) - The dollar firmed modestly on Tuesday, lifted by renewed concerns about the spread of the novel coronavirus, as countries around the world and some U.S. states imposed new lockdowns, stalling their paths to economic recovery.

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Some analysts said the dollar may have also benefited from the month-end and quarterly-end rebalancing flows.

That said, the dollar was on track to end both the second quarter and the month of June on a negative note. Investors sold the dollar and bought currencies that benefited from higher risk appetite as countries during the period looked to reopening their economies and anticipated developments on a new vaccine for the virus.

“Risk is off a little bit, so you’re seeing the dollar gaining a little bit. But it’s not a crazy risk-off day,” said John Doyle, vice president of dealing and trading, at Tempus, Inc. in Washington.

“There are new concerns. The warnings from the WHO, smaller headlines that added to a bigger story such as new lockdowns in places that you think may be past it,” he added.

The United States saw a 46% increase in new cases of COVID-19 in the week ended June 28 compared to the previous seven days, with 21 states reporting positivity test rates above the level that the World Health Organization has flagged as concerning.

WHO President Tedros Adhanom Ghebreyesus said the coronavirus pandemic is far from being over even though many countries have made some progress.

In late morning trading, the dollar index was up 0.1% at 97.530, holding onto overnight gains after upbeat U.S. home sales data boosted Wall Street.

On the quarter and month, the dollar was on pace for losses of 1.4% and 0.8% respectively.

The dollar also gained versus the yen, up 0.1% at 107.725 JPY=EBS

The euro, meanwhile, fell 0.3% against the dollar to $1.1212, pressured by data showing underlying price pressures dropped again in the euro zone. That underscored fears that consumer price growth will remain anaemic for years.

Over the quarter, the European currency staged a 1.6% comeback after falling by a similar margin during the first three months of the year marked by the coronavirus financial market crash. For the month of June, the euro was up 0.9%.

Traders said there remains a barrier of $1.1200 for the euro on the downside

Sterling reversed losses against the dollar to trade up 0.2% at $1.2328 GBP=D3. Earlier in the session, the pound lost ground after Britain’s Office for National Statistics said the economy shrank by 2.2% between January and March, its worst performance since 1979, as households slashed their spending.

The safe-haven Swiss franc CHF=EBS gained a little bit against the dollar. The greenback was last at 0.9499 franc CHF=EBS, down 0.2%.

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Currency bid prices at 10:34 AM (1434 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.1219 $1.1240 -0.19% +0.08% +1.1252 +1.1192

Dollar/Yen JPY= 107.6700 107.5600 +0.10% -1.09% +107.7900 +107.5300

Euro/Yen EURJPY= 120.81 120.92 -0.09% -0.93% +121.1700 +120.5900

Dollar/Swiss CHF= 0.9487 0.9511 -0.25% -1.97% +0.9532 +0.9486

Sterling/Dollar GBP= 1.2343 1.2296 +0.38% -6.91% +1.2347 +1.2259

Dollar/Canadian CAD= 1.3647 1.3657 -0.07% +5.09% +1.3699 +1.3650

Australian/Doll AUD= 0.6873 0.6864 +0.13% -2.11% +0.6885 +0.6834

ar

Euro/Swiss EURCHF= 1.0646 1.0692 -0.43% -1.90% +1.0699 +1.0643

Euro/Sterling EURGBP= 0.9087 0.9138 -0.56% +7.49% +0.9144 +0.9088

NZ NZD= 0.6420 0.6419 +0.02% -4.69% +0.6430 +0.6386

Dollar/Dollar

Dollar/Norway NOK= 9.6923 9.6711 +0.22% +10.41% +9.7682 +9.6666

Euro/Norway EURNOK= 10.8760 10.8720 +0.04% +10.55% +10.9500 +10.8650

Dollar/Sweden SEK= 9.3273 9.3280 -0.21% -0.21% +9.3872 +9.3201

Euro/Sweden EURSEK= 10.4655 10.4872 -0.21% -0.04% +10.5240 +10.4624

 

 

Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Julien Ponthus in London; Editing by Andrea Ricci
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