* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Tracking the coronavirus: https://tmsnrt.rs/3aIRuz7
* Dollar falls as Asia wakes up to Fed rate cut
* Central banks rushing to restore confidence in markets
* Investors fret economic impact of coronavirus
By Stanley White
TOKYO, March 16 (Reuters) - The dollar fell against a broad
range of currencies on Monday after the U.S. Federal Reserve
made another surprise interest rate cut and major central banks
took steps to relieve a shortage of dollars and provide extra
liquidity.
Pressure has been building on central banks to do something
to restore calm to financial markets roiled by the deepening
coronavirus crisis.
The U.S. Federal Reserve cut rates to a target range of 0%
to 0.25% on Sunday, U.S. time, and said it would expand its
balance sheet by at least $700 billion in the coming weeks.
The Bank of Japan said at an emergency meeting it would buy
more corporate bonds, commercial debt and set up a new corporate
lending scheme, joining the stepped up global response to the
respiratory disease that has spread from China to dozens of
countries and claimed more than 5,800 lives. Five other central banks cut pricing on their swap lines to
make it easier to provide dollars to their financial
institutions facing stress in credit markets.
Some analysts said the dollar's decline was likely to be
short-lived because the shortage of dollars in the global
financial system meant there would be consistent long-term
demand for the greenback in the spot market.
"The BOJ's measures will provide some help to corporate
financing, but unless there are matching steps from the
government, banks will be reluctant to lend," said Ayako Sera,
market strategist at Sumitomo Mitsui Trust Bank in Tokyo.
"More companies want to hold their dollars in cash to
facilitate payments, so if you hold dollars right now you have a
big advantage."
The dollar fell 1.2% to 106.70 yen JPY=EBS on Monday,
widening its losses after the BOJ's decision.
The greenback also fell 0.4% to $1.2338 per British pound
GBP=D3 .
Against the euro EUR=EBS , the dollar was little changed at
$1.1126.
The dollar eased 0.15% to 0.9493 Swiss franc CHF=EBS .
The Fed, the Bank of Canada, European Central Bank, the Bank
of England, the BOJ and Swiss National Bank all agreed to offer
three-month credit in U.S. dollars on a regular basis and at a
rate cheaper than usual.
The move was designed to bring down the price banks and
companies pay to access U.S. dollars, which has surged in recent
weeks as the coronavirus epidemic spooked investors.
The Fed had already cut interest rates by half a percentage
point on March 3 at an emergency meeting, the first emergency
cut since the financial crisis in 2008, but that move failed to
stem market volatility.
Sunday's rate cut was likely aimed at staving off what had
the potential to be another volatile week in financial markets,
analysts say. However, U.S. stock futures still plunged and
Asian shares fell, showing investors remain nervous. L4N2B80YP
On the China mainland, the yuan CNY=CFXS strengthened
slightly to 6.9910 per dollar.
CHINA, AUSTRALIA AND NEW ZEALAND MOVES
The People's Bank of China injected 100 billion yuan
($14.28 billion) into financial institutions on Monday but left
borrowing cost on its medium-term loans unchanged. The move came minutes before data showed China's retail
sales, industrial output, and fixed-asset investment in January
and February all tumbled.
The data reveal the scale of damage caused by the
coronavirus and suggest other countries could be in the same
situation.
Worries that travel restrictions and factory closures aimed
at containing the coronavirus will cause a global recession have
sent equities into a tailspin.
The rapid spread of the virus in Europe and the United
States has rattled investors who previously thought those
regions were shielded.
The Reserve Bank of New Zealand joined the global easing
race with a rate cut of 75 basis points to a record 0.25%, while
the Reserve Bank of Australia (RBA) added A$5.9 billion ($3.62
billion) to the banking system through market repo operations.
The RBA said on Monday it stands ready to purchase
government bonds and will announce further policy measures on
Thursday. There is lingering speculation the RBA will also cut
rates at some point.
The New Zealand dollar NZD=D3 fell 0.3% to $0.6039, while
the Australian dollar AUD=D3 fell 0.5% o $0.6157.
($1 = 1.6300 Australian dollars)
($1 = 7.0010 Chinese yuan)
(Editing by Sam Holmes, Jane Wardell and Jacqueline Wong)