* Risk rally runs out of steam, commodity currencies fall
most
* Kiwi jumps as lockdown rules to ease
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SINGAPORE, April 20 (Reuters) - The dollar found support on
Monday as global growth fears hit oil prices and commodity
currencies, while the New Zealand dollar rose on news that the
government will begin to relax strict virus containment measures
from next week.
The oil-sensitive Canadian dollar CAD=D3 , Russian rouble
RUB= and Norwegian krone NOK= each dropped about 0.5% as
weak demand and a supply glut crushed U.S. crude prices to a
21-year low. O/R
The dour mood weighed on riskier Asian currencies and pushed
the Australian dollar a touch lower. But the kiwi jumped 0.5%
after New Zealand Prime Minister Jacinda Ardern said a gradual
roll back of lockdown rules would begin on April 27.
The nation, which has recorded just 12 deaths from COVID-19,
the respiratory disease caused by the new coronavirus, will
lower its alert level one notch next Monday - allowing some
businesses to resume - and review that stance on May 11.
"The market wasn't expecting quite such a short timeframe
for the potential relaxation of restriction levels," said Ray
Attrill, head of FX at National Australia Bank in Sydney.
"However the risk sentiment today is not quite as positive
as it was," he said. "There is still a degree of safe haven
support and a level of demand for U.S. dollar that is going to
transcend whether or not we are in risk-on or risk-off mode."
The Australian dollar AUD=D3 sat at $0.6354, about 1.5%
below a month-high hit last week, while the kiwi NZD=D3 hit a
three-session high of $0.6059.
Moves in other majors were modest, but together with
cautious trade in regional equities markets seemed to cap a few
weeks of risk appetite and dollar softness.
The dollar was a tad firmer on other majors, gaining about
0.1% on the euro and pound and 0.3% on the Japanese yen. It last
bought 107.80 yen JPY= and traded at $1.2478 per pound GBP=
and $1.0870 per euro EUR= .
'EYE OF THE STORM'
New Zealand's move to ease its tough lockdown comes as the
country has all but halted the virus' spread - it has one of the
lowest per-capita case counts in the world and has traced all
but eight of 1,440 national cases to its source.
The relaxation is only modest, allowing for the resumption
of construction, forestry and manufacturing and not socialising,
but Ardern said further easing would be considered next month.
The picture elsewhere, though, is less clear and is joined
by a wave of economic destruction.
An almost 12% drop in Japan's exports in March reported on
Monday, the steepest slump in nearly four years, augurs badly.
In the United States, where the death toll rose to more than
40,000 on Sunday, state governors have sparred with President
Donald Trump over virus testing capacity and how quickly their
economies can re-open.
Britain is not considering lifting its lockdown, a senior
minister said on Sunday, while leaders in Ireland and Canada
have flagged long-lasting social distancing rules. "We are coming into the eye of the storm," said Chris
Weston, head of research at brokerage Pepperstone in Melbourne.
"And as the market starts to focus less on virus headlines,
or at least will be less sensitive to better news, we will focus
more on the lasting effects on the economy and solvency."
Elsewhere China's yuan CNY= eased after a cut to a
benchmark interest rate and the Mexican peso MXN= dropped
about 1% following Moody's downgrading the sovereign credit
rating on Friday.