FOREX-Dollar edges higher against oil currencies as energy markets shaken

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Oil turmoil rattles FX market
* Coronavirus threatens global energy demand
* Euro looks to policymakers for fiscal response

By Stanley White
TOKYO, April 23 (Reuters) - The dollar pushed ahead against
the currencies of oil producers on Thursday as a rebound in
crude prices from an unprecedented collapse only partially
calmed markets unnerved by the massive coronavirus-led drop in
global demand.
The euro held steady against the greenback and the pound
ahead a of meeting of European Union officials on the bloc's
response to the economic turmoil caused by the global
coronavirus pandemic.
Analysts say sentiment is still supportive of the U.S.
currency because the coronavirus outbreak is driving a global
depression, which will encourage investors to opt for the safety
of holding their funds in dollars.
"The dollar is a bit of a phoenix-type character; it seems
to keep coming back," said Ray Attrill, head of FX strategy at
National Australia Bank in Sydney.
"I'm still of the view that the dollar rally is on borrowed
time, but there are still signs of stress, and it's not clear
that the dollar shortage has been addressed for everyone."
The U.S. dollar edged up against the Canadian dollar CAD=
to C$1.4177 following a 0.3% decline on Wednesday.
The greenback held steady at 24.4710 Mexican pesos MXN=D3 ,
close to a two-week high.
Against the Norwegian crown NOK= , the U.S. currency edged
up to 10.7706, near a one-month high reached on Wednesday.
U.S. West Texas Intermediate (WTI) futures CLc1 rose 4.21%
to $14.36 a barrel early in Asian trading on Thursday. On Monday
front-month WTI futures fell to around minus $40 as a glut of
oil and dwindling capacity to store it sent oil prices into a
tail spin. O/R
Brent crude LCOc1 has also managed to rebound from the its
lowest level since June 1999.
These gains pale against persistent investor concerns about
the collapse in demand for oil, as major economies have been
brought to a virtual standstill with stay-at-home rules and
severe restrictions on businesses and travel to limit the spread
of the coronavirus.
Countries are running out of space to store the oil that
they are not using, which could lead to further disruptions for
commodities and other markets.
Officials from the EU will discuss the bloc's response to
the economic damage caused by the coronavirus later on Thursday.
However, markets are wary because it is uncertain how far EU
governments will cooperate in financing the recovery from what
is sure to be a deep recession. Ahead of the outcome of the meeting, the euro EUR=EBS
edged lower to $1.0807. Against the pound EURGBP=D3 , the
common currency was little changed at 87.77 pence.
The European Central Bank has agreed to accept junk bonds as
collateral to allow banks to finance themselves at the ECB,
which should be a positive factor for the euro, but investors
are waiting for details on the fiscal response. The dollar was little changed versus the yen as the pair
remains stuck in a holding pattern.
The greenback last traded at 107.83 yen. JPY=EBS
The Australian dollar AUD=D3 fell 0.46% to $0.6294 as a
bounce driven by Wednesday's encouraging data on retail sales
quickly ran out of steam.
The decline in the Aussie weighed on the New Zealand dollar
NZD=D3 , which fell 0.54% to $0.5924.