* Coronavirus concerns boosts safe haven bid for dollar
* U.S. economic picture more bullish than eurozone's
* Australian dollar sinks to lowest since 2009
(New throughout, updates prices, market activity and comments
to U.S. market open, new byline, changes dateline, previous
LONDON)
By Karen Brettell
NEW YORK, Feb 10 (Reuters) - The dollar hit a four-month
high against the euro on Monday as concerns about the
coronavirus boosted demand for safe havens, while a bullish
outlook for the U.S. economy and weak data in the eurozone made
the greenback relatively more attractive than the single
currency.
People across China trickled back to work on Monday after an
extended Lunar New Year holiday as the government eased
restrictions imposed to counter the coronavirus, but the World
Health Organization said the number of cases outside China could
be just "the tip of the iceberg." Investors are concerned that the spreading virus will dent
the global economic outlook.
Relatively strong economic data in the United States is also
making the greenback more attractive than other currencies.
Data on Friday showed that U.S. job growth accelerated in
January. By contrast, German industrial output suffered its biggest
fall in December since the recession-hit year of 2009, data on
Friday showed. Data on Monday also revealed that Italian
industrial output was much weaker than expected in December.
“We had much stronger than expected U.S. data, coupled with
much weaker than expected eurozone data,” said Win Thin, global
head of currency strategy at Brown Brothers Harriman in New
York.
At the same time, “we have the safe haven bid from the
coronavirus. That is killing EM and really benefiting the
dollar, and to a lesser extent the yen and Swiss,” Thin said.
Political uncertainty in Germany is an additional headwind
for the euro.
Annegret Kramp-Karrenbauer, leader of Chancellor Angela
Merkel's Christian Democrats (CDU), on Monday confirmed she
would not run for chancellor in next year's federal election but
added that she would remain party chair until another candidate
is found. The euro EUR= fell to a four-month low of $1.0925. The
British pound GBP= dropped to a two-month low of $1.2870
before rebounding to $1.2938.
The Australian dollar AUD= sank to $0.6656, the lowest
since 2009, before gaining back to $0.6682. Australia's economy
is highly correlated to China's.
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Currency bid prices at 9:27AM (1427 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0928 $1.0943 -0.14% -2.52% +1.0957 +1.0928
Dollar/Yen JPY= 109.6600 109.7200 -0.05% +0.73% +109.8700 +109.5700
Euro/Yen EURJPY= 119.87 120.10 -0.19% -1.71% +120.3300 +119.8500
Dollar/Swiss CHF= 0.9774 0.9777 -0.03% +0.99% +0.9783 +0.9764
Sterling/Dollar GBP= 1.2938 1.2891 +0.36% -2.42% +1.2945 +1.2873
Dollar/Canadian CAD= 1.3316 1.3311 +0.04% +2.54% +1.3329 +1.3289
Australian/Doll AUD= 0.6682 0.6672 +0.15% -4.83% +0.6707 +0.6659
Euro/Swiss EURCHF= 1.0683 1.0699 -0.15% -1.56% +1.0713 +1.0683
Euro/Sterling EURGBP= 0.8447 0.8492 -0.53% -0.08% +0.8504 +0.8446
NZ NZD= 0.6395 0.6400 -0.08% -5.06% +0.6417 +0.6391
Dollar/Dollar
Dollar/Norway NOK= 9.2695 9.2997 -0.32% +5.59% +9.3062 +9.2312
Euro/Norway EURNOK= 10.1313 10.1790 -0.47% +2.98% +10.1933 +10.1090
Dollar/Sweden SEK= 9.6711 9.6580 +0.00% +3.48% +9.6834 +9.6338
Euro/Sweden EURSEK= 10.5723 10.5722 +0.00% +0.98% +10.5890 +10.5504