* Stock markets hit record highs as risk sentiment improves
* New Zealand dollar jumps as rate cut no longer projected
(Adds German leadership vacuum; updates prices)
By Karen Brettell
NEW YORK, Feb 12 (Reuters) - The greenback hit a more than
two-year high against the euro on Wednesday as investors put
more money into the U.S. stock market on growing optimism that
the coronavirus will be contained.
China reported on Wednesday its lowest number of new
coronavirus cases in two weeks, bolstering a forecast by
Beijing's senior medical adviser for the outbreak in the country
to end by April. Even so, fears of further international spread
remained. “The market is reasonably confident that China will be able
to get control of the virus, although it may take some time,”
said Steve Englander, head of global G10 FX research at Standard
Chartered in New York. “The fact that it just doesn't seem to be
as deadly outside of China is something that's comforting
markets.”
The S&P 500 and Dow Jones Industrials hit all-time highs on
Wednesday. .N
Investors also grew more comfortable with risk on the view
that central banks are likely to provide increased accommodation
if the coronavirus harms the global economy.
On Tuesday, Federal Reserve Chair Jerome Powell told
Congress the U.S. economy is in a good place, even as he cited
the potential threat from the coronavirus in China and some
long-term concerns. The dollar gained 0.26% against the Japanese yen JPY= to
110.06 yen. The euro EUR= dropped 0.41% against the greenback
to $1.0869, the lowest level since May 2017.
The greenback has strengthened against the euro as economic
data shows a brighter economic outlook for the United States
than for the euro zone.
"The U.S. economic data is still superior to other
economies' and the growth gap with the rest of the world remains
substantial," said Ugo Lancioni, portfolio manager of the
Neuberger Berman Macro Opportunities FX Fund.
Political uncertainty in Germany is an additional headwind
for the single currency.
Annegret Kramp-Karrenbauer, leader of Chancellor Angela
Merkel's Christian Democrats (CDU), on Monday confirmed she
would not run for chancellor in next year's federal election,
but said she would remain party chair until another candidate is
found. The New Zealand dollar NZD= jumped to a one-week high
after the central bank removed the chance of a rate cut from its
forward projections. NZD/
========================================================
Currency bid prices at 2:33PM (1933 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0869 $1.0914 -0.41% -3.04% +1.0925 +1.0866
Dollar/Yen JPY= 110.0600 109.7700 +0.26% +1.10% +110.1300 +109.7800
Euro/Yen EURJPY= 119.63 119.84 -0.18% -1.90% +120.2900 +119.6200
Dollar/Swiss CHF= 0.9782 0.9757 +0.26% +1.07% +0.9784 +0.9741
Sterling/Dollar GBP= 1.2964 1.2951 +0.10% -2.22% +1.2991 +1.2950
Dollar/Canadian CAD= 1.3251 1.3286 -0.26% +2.04% +1.3295 +1.3235
Australian/Doll AUD= 0.6736 0.6713 +0.34% -4.06% +0.6750 +0.6713
Euro/Swiss EURCHF= 1.0633 1.0652 -0.18% -2.02% +1.0662 +1.0632
Euro/Sterling EURGBP= 0.8380 0.8425 -0.53% -0.86% +0.8432 +0.8382
NZ NZD= 0.6461 0.6401 +0.94% -4.08% +0.6487 +0.6402
Dollar/Dollar
Dollar/Norway NOK= 9.2332 9.2480 -0.16% +5.18% +9.2496 +9.1989
Euro/Norway EURNOK= 10.0365 10.0964 -0.59% +2.02% +10.1010 +10.0337
Dollar/Sweden SEK= 9.6400 9.6358 -0.39% +3.13% +9.6455 +9.6137
Euro/Sweden EURSEK= 10.4788 10.5200 -0.39% +0.09% +10.5217 +10.4793