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UPDATE 1-Euro plunges against Swiss franc as China virus cases soar

Published 13/02/2020, 09:32
© Reuters.  UPDATE 1-Euro plunges against Swiss franc as China virus cases soar

(Adds details)

By Saikat Chatterjee and Hideyuki Sano

TOKYO/LONDON, Feb 13 (Reuters) - The euro fell to a

four-and-a-half-year low against the Swiss franc on Thursday and

the yen gained as investors sought safe havens after China's

Hubei province, the epicentre of the coronavirus outbreak,

reported a sharp increase in the number of new cases.

Using a new method of diagnosis, the province reported on

Thursday 14,840 new cases of the virus as of Feb. 12, up from

1,638 new cases on Tuesday. The number of deaths in the province

rose by 242, a daily record, to 1,310. "Taken together, it suggests fading the overnight reaction,"

said Elsa Lignos, global head of FX strategy at RBC Capital

Markets.

The initial move was to dump risky assets, however. After

weakening to a three-and-a-half-week low the day before, the yen

gained 0.3% against the dollar on Thursday JPY=EBS to 109.770

The euro dipped to 1.0622 francs, below its 2016 trough of

1.0623 and its lowest level since August 2015. It last stood

around 1.06235 EURCHF= .

"When you see numbers like this, you can't help but move to

risk-off trades, which means buy the yen and sell stocks," said

Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank in

Tokyo.

In the onshore market, the yuan CNY=CFXS slipped 0.13% to

6.9809 per dollar. The offshore yuan CNH=D3 dropped 0.14% to

6.9830.

The Australian dollar AUD=D3 , widely used as a proxy for

risk on Chinese assets, fell 0.22% to $0.6724. The New Zealand

dollar NZD=D3 slipped 0.2% to $0.6453.

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