* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Saikat Chatterjee
LONDON, Feb 6 (Reuters) - The Australian dollar rose for a
fourth straight day on Thursday and the Chinese yuan gained
after Beijing unexpectedly said it would reduce tariffs on some
U.S. imports, fueling demand for riskier assets.
China said on Thursday it would halve tariffs on some U.S.
imports, bolstering hopes the global economy will avoid a major
shock from a coronavirus outbreak. It also said it hoped to work
with the United States to eliminate all tariff increases in
future. That seemed to dispel pessimism about the economic impact of
the coronavirus outbreak. Still, the number of deaths from the
disease rose by 75 on Thursday, almost all of them in China, and
media reports this week of a treatment proved to be premature.
"Though yesterday's coronavirus vaccine stories were
premature, markets have extended the risk-on tone overnight,
this time on news that China will halve tariffs," Elsa Lignos,
global head of FX strategy at RBC Capital Markets said.
Moreover, though infections stood at more than 28,000, RBC's
Lignos noted Thursday was the first day in over a week that new
case numbers appear to be stabilising in China.
Chinese authorities have also pumped in billion of dollars
into money markets this week in an effort to restore calm and
have pledged to do more to support the economy.
Against the dollar, the Aussie AUD=D3 advanced 0.1% to
$0.6765. The Chinese yuan was trading at 6.9702 yuan per dollar,
after weakening to 7 per dollar on Monday.
The U.S. dollar gained 0.1% to $1.2985 per pound. It was
trading just below a two-month high against the euro EUR= at
$1.0996.
Broader market volatility fell to new lows, with one-month
implied euro-dollar price swings EUR1MO= dropping to a record
low of 3.7% this week.