* Offshore yuan stabilises after breaching 7 per dollar
* Aussie, Kiwi extend losses to new multi-month lows
* Euro edges lower ahead of inflation data
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
LONDON, Jan 31 (Reuters) - China's yuan steadied on Friday
while the Australian and New Zealand dollars weakened again as
World Health Organization confidence in China's response to the
new coronavirus was offset by concerns about the economic impact
of the disease.
The WHO said late on Thursday that the coronavirus outbreak
was a global emergency, but opposed travel restrictions and said
China's actions so far would "reverse the tide" of its spread.
The WHO's assured tone was enough to pause a rush to safety
that has for two weeks pounded stocks and hammered currencies
and commodities exposed to China.
The yen and Swiss franc weakened slightly, suggesting a
slightly better mood among investors on Friday.
China's offshore yuan rose marginally to 6.9801 CNH=EBS ,
some way off the 7.0038 low it hit on Thursday as investors
fretted about the hit to the Chinese economy from the virus.
The death toll in China has now reached 213 and the number
of cases is 9,692 - up from 7,711 a day ago. It has spread to 18
countries. The U.S. has warned citizens against visiting China.
"While the WHO does not recommend a travel and trade
restriction, the impact on China's economy is likely to
materialize gradually, which will yield an international impact
as China plays an essential role in the global supply chain,"
Commerzbank economist Hao Zhou said.
The Australian and New Zealand dollars, both sensitive to
sentiment in China, fell to new multi-month lows.
The New Zealand dollar NZD=D3 dropped 0.4% and touched a
two-month low of $0.6468. The Australian dollar AUD=D3 lost
0.4% to $0.6699, a four-month low.
Both have shed more than 1.5% this week and the Aussie has
dropped more than 4% this month, leaving it poised for its worst
month since May 2016.
"Aussie and kiwi are what I've called the whipping boys, if
you like, for expressing concern about the spreading of the
virus and its potential global economic ramifications," said Ray
Attrill, Head of FX Strategy at National Australia Bank.
Elsewhere other major currencies were quiet, with
euro/dollar little moved at $1.1025 EUR=EBS ahead of euro zone
flash inflation and GDP data due at 1000 GMT.
The dollar index was unchanged at 97.896 .DXY .
Sterling rose another 0.3%, extending its run after the Bank
of England kept interest rates on hold, citing a relatively more
upbeat economic outlook. The pound was last up 0.3% at $1.3136
GBP=D3 .
Versus the euro it rallied 0.4% to 83.90 pence EURGBP=D3 .