FOREX-Dollar drops after Fed launches new loan program

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

(Adds details, updates prices; changes byline, dateline;
previous LONDON)
By Karen Brettell
NEW YORK, April 9 (Reuters) - The dollar dropped broadly on
Thursday after the Federal Reserve rolled out a $2.3 trillion
effort to bolster local governments and small and mid-sized
businesses in its latest move to keep the U.S. economy intact as
the country battles the coronavirus pandemic.
The central bank's announcement came as data showed that the
number of Americans seeking unemployment benefits topped 6
million for the second straight week, with businesses closed
across the country in an attempt to stem the spread of the
virus. “The Fed's bold efforts helped to offset more horrific news
on the job market. I would say that the Fed's forceful action
today underscores the unlimited firepower that the central bank
wields and that's going some way into sustaining the calm that's
descended on markets this week,” said Joe Manimbo, senior market
analyst at Western Union Business Solutions in Washington.
The Federal Reserve will continue to use all the tools at
its disposal until the U.S. economy begins to rebound fully from
the harm caused by the novel coronavirus outbreak, Fed Chair
Jerome Powell said on Thursday, even as he acknowledged the
limits of the central bank's powers. The dollar index measuring the greenback against a basket of
currencies =USD fell to a one-week low of 99.50.
Stocks have gained this week as risk appetite improves on
optimism that regions that have been hit hard by the virus may
be close to reaching a peak, which has reduced demand for the
safe-haven dollar. .N
Riskier currencies, including the Australian dollar AUD= ,
continued to outperform on Thursday. It gained 1.11% to $0.6295,
the highest in over three weeks.
The dollar dipped 0.15% against the Japanese yen to 108.81
yen. JPY=
The euro EUR= gained 0.64% to $1.0926.
European Union governments piled pressure on the Netherlands
on Thursday to unblock half-a-trillion euros of economic support
to fight the pandemic ahead of a meeting of finance ministers,
with Italy saying the very future of the EU was at stake.
Currency bid prices at 10:03AM (1403 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0926 $1.0856 +0.64% -2.54% +1.0941 +1.0842
Dollar/Yen JPY= 108.6500 108.8100 -0.15% -0.19% +109.0600 +108.6100
Euro/Yen EURJPY= 118.72 118.14 +0.49% -2.65% +119.0000 +118.0800
Dollar/Swiss CHF= 0.9679 0.9717 -0.39% +0.01% +0.9733 +0.9667
Sterling/Dollar GBP= 1.2465 1.2385 +0.65% -5.99% +1.2479 +1.2362
Dollar/Canadian CAD= 1.3992 1.4012 -0.14% +7.75% +1.4076 +1.3955
Australian/Doll AUD= 0.6295 0.6226 +1.11% -10.34% +0.6306 +0.6196
ar
Euro/Swiss EURCHF= 1.0574 1.0551 +0.22% -2.55% +1.0582 +1.0550
Euro/Sterling EURGBP= 0.8765 0.8763 +0.02% +3.68% +0.8782 +0.8727
NZ NZD= 0.6057 0.6004 +0.88% -10.08% +0.6066 +0.5987
Dollar/Dollar
Dollar/Norway NOK= 10.1768 10.2544 -0.76% +15.92% +10.3388 +10.1561
Euro/Norway EURNOK= 11.1190 11.1320 -0.12% +13.02% +11.2429 +11.0770
Dollar/Sweden SEK= 9.9758 10.0609 -0.32% +6.72% +10.0986 +9.9537
Euro/Sweden EURSEK= 10.9037 10.9384 -0.32% +4.15% +10.9585 +10.8840