FOREX-Dollar stays firm as coronavirus anxiety persists

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Hideyuki Sano
TOKYO, June 26 (Reuters) - The dollar held firm on Friday as
caution over rapid rises in U.S. coronavirus cases cast doubt
over the reopening of the economy, keeping the allure of its
safe-haven value.
The dollar index =USD stood at 97.360, having pared a
large part of this week's losses.
Against the yen, the dollar traded at 107.17 yen JPY= ,
having gained 0.5% in the overnight session.
The euro eased to $1.1221 EUR= , losing steam after hitting
a one-week peak of $1.1348 on Tuesday though the currency has
maintained weekly gains of about 0.4%.
Sterling slipped to $1.2422 GBP=D4 , off this week's high
of $1.2541 touched on Wednesday.
Also supporting the greenback was the broader rise in
corporate demand typically seen towards the end of the month.
That helped the dollar stay firm despite the stubbornly upbeat
risk appetite seen in global equity markets, which comes even as
new coronavirus infections surge. MKTS/GLOB
The governor of Texas temporarily halted the state's
reopening on Thursday as COVID-19 infections and
hospitalisations surged and new daily cases around the country
climbed to record levels. "When you look at things like restaurant bookings data, it
looks as if they are heading back to square one after a strong
recovery," said Kyosuke Suzuki, director of forex at Societe
Generale.
"If this continues day by day, people will likely have to
review their recovery scenario."
Data on Thursday showed weak demand is forcing U.S.
employers to lay off workers, keeping new applications for
unemployment benefits extraordinarily high, even as businesses
have reopened. Initial claims for state unemployment benefits stood at a
seasonally adjusted 1.48 million for the week ended June 20,
down 60,000 from a week earlier but still double their peak
during the 2007-2009 Great Recession.
More economic data is due next week, including U.S. jobs and
manufacturing surveys but ahead of that trade could be moved by
month-end and quarter-end flows, traders said.
Elsewhere, the Australian dollar fetched $0.6891 AUD=D4 ,
stuck in its rough $0.68-0.70 range in the past couple of weeks.
The Turkish lira stood flat after the country's central bank
unexpectedly halted a nearly year-long easing cycle on Thursday,
by keeping its key interest rate unchanged at 8.25% and citing
upward pressure on inflation. The lira stood at 6.8538 per dollar TRY= .
The Mexican peso hovered above a one-month low after
Banxico, the country's central bank cut its interest rates by 50
basis points as expected late on Thursday.