FOREX-Yen gains, risk currencies slide as coronavirus worries deepen

* Dollar index up slightly, yen at 2-week high
* Yuan dips but stays near 4-month high
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Hideyuki Sano
TOKYO, July 10 (Reuters) - The yen rose to a two-week high
and risk-sensitive currencies slid on Friday after a surge in
new coronavirus infections in the United States further
undermined the case for a quick turnaround in the economy.
More than 60,000 new COVID-19 cases were reported across the
United States, the largest single-day tally by any country in
the pandemic so far, discouraging some American consumers from
returning to public spaces. Some Asian cities that had appeared to have contained the
disease, such as Tokyo, Hong Kong and Melbourne, have seen an
alarming spike in cases, dampening the mood further.
The caution helped to drive the safe-haven yen by 0.25% to a
two-week high of 106.93 per dollar JPY= .
The dollar gained against most other currencies, with its
index .DXY gaining about 0.2% to 96.919 from a near one-month
low of 96.233 touched on Thursday.
The Swiss franc, another safe-haven, flirted near a six-week
high against the euro, at 1.0619 franc per euro EURCHF= .
Against the dollar, the franc changed hands at 0.9419 per
dollar CHF= after having touched a four-month high of 0.93625
to the dollar.
The euro shed 0.1% to $1.1273 EUR= , slipping back from a
one-month high of $1.1371 on Thursday.
Thursday's weekly data showed the number of Americans filing
for initial jobless benefits dropped to a near four-month low
last week. Still, with companies from retailers to airlines announcing
job cuts and furloughs, the outlook remained highly uncertain.
There were 32.9 million people receiving unemployment
checks, putting together all programs, in the third week of
June, up 1.411 million from the middle of the month.
"Although we have seen improvements in economic data, people
are beginning to think that is just a natural outcome of
economic reopenings. Now they are starting to worry more about
increasing infections," said Minori Uchida, chief currency
strategist at MUFG Bank.
Many risk-sensitive currencies took a step back following
their rally in recent weeks.
The Australian dollar lost 0.5% to $0.6929 AUD=D4 , off
Thursday's one-month high of $0.7001.
The yuan was down about 0.2% at 7.0115 yuan per dollar
CNH= , having touched near-four-month high of 6.9808 on
Thursday.
The Chinese currency has fared better than most other risk
sensitive currencies this week, so far gaining almost 1%,
supported by hopes of capital inflows as Chinese share prices
have surged after Beijing indicated it wants a healthy bull
market.
In addition to stock investments and hopes of a recovery in
the world's second-biggest economy, higher China debt yields are
also attracting foreign capital, said Dmitriy Vlasov, portfolio
advisor at East Capital in Hong Kong.
"We have had quite a big inflows in the fixed income markets
as interest rate differentials are also leading to the
appreciation of the yuan."