* Dollar shrugs off surge in U.S. jobless claims
* Forecasts show U.S. job losses of 100,000 in March -Reuters poll
* Norwegian crown up nearly 2% amid better dollar liquidity
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Adds comment, outlook for U.S. non-farm payrolls, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 2 (Reuters) - The dollar rose against a basket of currencies for a second straight day
on Thursday as investors, worried about the prospect of a global recession, continued to take shelter in
the greenback.
"With the increase in the coronavirus impact around the world, investors are looking at the dollar as
a safe haven," said Chris Gaffney, president of world markets at TIAA Bank in St. Louis, Missouri.
U.S. jobless claims in the latest week soared to a record level, yet the dollar's reaction was tepid
at most.
Initial claims for unemployment benefits rose to 6.65 million in the latest week from an unrevised 3.3
million the previous week. The figure far exceeded the median estimate of 3.50 million in a Reuters survey
of economists. Investors are now looking to Friday's U.S. non-farm payrolls report for March. Economists are
forecasting U.S. job losses of 100,000 for last month, a sharp reversal from job gains of 273,000 in
February, according to a Reuters poll. That would be the first decline in jobs since September 2010.
"Of course, the drop in payrolls will be far worse in April, almost surely exceeding the largest
monthly loss recorded during the financial crisis, which was 800,000 in March 2009," Natwest Markets said
in a research note.
Markets have been alarmed since President Donald Trump's warning on Tuesday of a painful two weeks
ahead in fighting the coronavirus, even with strict social distancing measures. The United States has over 200,000 confirmed COVID-19 cases - the most worldwide - which has sent
investors flocking to safe-haven assets. Globally, coronavirus cases topped 1 million on Thursday,
according to a tally by Johns Hopkins University.
Some analysts do not expect the dollar to extend its recent rally after the Federal Reserve took a
series of measures, which have begun to have an impact, to ensure an adequate global supply of the
currency. The cost of raising U.S. dollar funds in the yen and euro swaps market stabilized on Thursday, with
premiums favoring the other currencies, suggesting that greenback demand had receded from earlier in the
coronavirus pandemic EURCBS3M=ICAP JPYCBS3M=ICAP . In late afternoon trading, the dollar index was up 0.7% at 100.17 =USD .
Against the yen, the dollar rose 0.7% at 107.91 yen JPY=EBS .
The euro extended its decline, falling more than 1% to $1.0847, after hitting a one-week low
EUR=EBS .
The Fed's efforts to improve dollar liquidity have boosted other currencies such as the Norwegian
crown, which advanced further on Thursday, to a three-week high of 11.1820 against the euro. It was last
trading up 2% at 11.24 EURNOK=D3 .
========================================================
Currency bid prices at 4:03PM (2003 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0849 $1.0962 -1.03% -3.22% +1.0968 +1.0822
Dollar/Yen JPY= 107.9300 107.1500 +0.73% -0.85% +108.0900 +107.0300
Euro/Yen EURJPY= 117.09 117.48 -0.33% -3.99% +117.7200 +116.3600
Dollar/Swiss CHF= 0.9737 0.9654 +0.86% +0.61% +0.9750 +0.9651
Sterling/Dollar GBP= 1.2395 1.2376 +0.15% -6.52% +1.2474 +1.2351
Dollar/Canadian CAD= 1.4172 1.4188 -0.11% +9.13% +1.4298 +1.4081
Australian/Doll AUD= 0.6049 0.6070 -0.35% -13.84% +0.6119 +0.6008
ar
Euro/Swiss EURCHF= 1.0563 1.0582 -0.18% -2.65% +1.0594 +1.0547
Euro/Sterling EURGBP= 0.8750 0.8858 -1.22% +3.50% +0.8861 +0.8741
NZ NZD= 0.5914 0.5905 +0.15% -12.20% +0.5973 +0.5882
Dollar/Dollar
Dollar/Norway NOK= 10.3842 10.4310 -0.45% +18.29% +10.4866 +10.2252
Euro/Norway EURNOK= 11.2710 11.4640 -1.68% +14.57% +11.4785 +11.1648
Dollar/Sweden SEK= 10.0968 9.9826 -0.43% +8.02% +10.1648 +9.9849
Euro/Sweden EURSEK= 10.9615 11.0085 -0.43% +4.70% +11.0163 +10.9102