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FOREX-Dollar drops vs yen as virus fears outweigh strong U.S. jobs data

Published 07/02/2020, 16:57
Updated 07/02/2020, 17:00
© Reuters.  FOREX-Dollar drops vs yen as virus fears outweigh strong U.S. jobs data
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* U.S. non-farm payrolls show 225,000 job gains

* Euro hurt by poor German data, worst week since November

* Coronavirus fears keep sentiment fragile, yen gains

* Death toll from virus reaches 637

* GRAPHIC-World FX rates in 2019: http://tmsnrt.rs/2egbfVh

(Recasts, adds new comment, U.S. data, FX table, updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, Feb 7 (Reuters) - The dollar fell against the safe-haven yen on Friday as nagging fears

about the latest coronavirus that broke out in China a few weeks ago overshadowed an overall strong U.S.

non-farm payrolls report.

The yen rose after four straight days of selling that was spurred by investors being encouraged by the

efforts from the Chinese government to contain the virus and limit its economic fallout.

The dollar, however, barely budged against the yen after robust U.S. non-farm payrolls numbers for

January.

Data showed nonfarm payrolls increased by 225,000 jobs last month, with employment at construction

sites increasing by the most in a year amid milder-than-normal temperatures. Economists polled by Reuters

had forecast payrolls would rise by 160,000 jobs in January. "The gains in the dollar right after the data can best be described as tepid," said Bipan Rai, North

American head of FX strategy, at CIBC Capital Markets in Toronto.

"But the data was quite robust, with the number of jobs added to the economy, and the fact that we're

still growing, but at probably a much more subdued pace than what the market had anticipated," he added.

In late morning trading, the dollar dropped 0.4% against the yen to 109.61 yen JPY= and was little

changed against the Swiss franc at 0.9750 franc CHF= .

The dollar index, which measures the currency against a basket of rivals, edged lower to 98.47

.DXY .

Brian Daingerfield, head of G10 FX strategy at Natwest Markets in Stamford, Connecticut said the

coronavirus has injected a lot of uncertainty in the market, as investors wondered whether the improvement

in global data in January can be sustained.

The death toll in mainland China reached 637 on Friday, with a total of 31,211 cases, WHO chief Tedros

Adhanom Ghebreyesus said on Friday in Geneva. The virus has spread around the world, with 320 cases in 27

countries and regions outside mainland China, a Reuters tally of official statements shows. The euro, meanwhile, fell to its lowest since October on Friday after German industrial output

recorded its biggest decline in a decade in December.

The single European currency dropped to as low as fell as low as $1.0949 EUR= , and was last down

0.1% and has now lost 1.2% since Monday, putting it on track for its worst week since November.

The offshore yuan slipped 0.4% to 7.007 yuan per dollar CNH= , though it was still set for a small

gain this week thanks to stimulus from China's central bank and Beijing's announcement of tariff cuts on

U.S. imports. The Australian dollar, often seen as a proxy for China, weakened 0.7% to US$0.6679 AUD= , its lowest

since October, after the Reserve Bank of Australia slashed growth forecasts in its quarterly economic

outlook. Currency bid prices at 10:28 AM (1528 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.0958 $1.0980 -0.20% -2.25% +1.0985 +1.0949

Dollar/Yen JPY= 109.6200 109.9900 -0.34% +0.70% +110.0200 +109.5400

Euro/Yen EURJPY= 120.15 120.78 -0.52% -1.48% +120.8000 +120.1300

Dollar/Swiss CHF= 0.9757 0.9744 +0.13% +0.82% +0.9770 +0.9740

Sterling/Dollar GBP= 1.2939 1.2928 +0.09% -2.41% +1.2958 +1.2922

Dollar/Canadian CAD= 1.3307 1.3284 +0.17% +2.47% +1.3319 +1.3280

Australian/Doll AUD= 0.6677 0.6730 -0.79% -4.90% +0.6736 +0.6663

Euro/Swiss EURCHF= 1.0692 1.0702 -0.09% -1.46% +1.0709 +1.0680

Euro/Sterling EURGBP= 0.8469 0.8492 -0.27% +0.18% +0.8497 +0.8462

NZ NZD= 0.6410 0.6456 -0.71% -4.84% +0.6463 +0.6404

Dollar/Dollar

Dollar/Norway NOK= 9.2818 9.2171 +0.70% +5.74% +9.2959 +9.2168

Euro/Norway EURNOK= 10.1710 10.1228 +0.48% +3.39% +10.1974 +10.1184

Dollar/Sweden SEK= 9.6395 9.6221 -0.04% +3.12% +9.6514 +9.6083

Euro/Sweden EURSEK= 10.5625 10.5672 -0.04% +0.89% +10.5844 +10.5357

Euro vs U.S. dollar https://tmsnrt.rs/37aqSnn

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