* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Tuesday is last trading of Japan's fiscal year
* Other investors close books at end of Jan-March quarter
* Traders look to economic data to measure virus impact
By Stanley White
TOKYO, March 31 (Reuters) - The dollar rose against the yen
on Tuesday as Japanese investors and companies rushed to cover a
shortage of the U.S. currency before their fiscal year end, but
sentiment remained fragile as the global coronavirus crisis
showed no signs of abating.
China's yuan held steady in offshore trade but could be
buffeted by the release of a key manufacturing survey later in
the day as investors count the economic cost of the coronavirus,
which first emerged in China late last year.
The pound fell against the greenback and the euro as a
sovereign ratings downgrade continued to weigh on sterling,
underlining the strain on public finances from a much needed
massive fiscal stimulus.
Tuesday is the last trading data for Japan's fiscal year and
the end of the quarter for major investors elsewhere, which
could lead to some volatile swings as big players in the
currency market close their books.
However, analysts warn that an almost certain global
recession due to the coronavirus will remain a dominant
influence in trading and eventually favour currencies least
affected by the economic downturn.
"The talk is Japanese names are short of dollars, which is
likely to keep the dollar bid well into London time," said Yukio
Ishizuki, FX strategist at Daiwa Securities in Tokyo.
"We have to look beyond that and focus on what's going on in
China's economy. Even if there is some decent data from China, I
cannot be optimistic, because economic activity in many
countries is grinding to a halt."
The dollar rose 0.23% to 108.06 yen JPY=EBS on Tuesday in
Asia.
In the offshore market, the yuan CNH=D3 was little changed
at 7.1114 versus the dollar.
China's official manufacturing Purchasing Manager's Index is
expected to show activity likely remained in contraction in
March, though it was set to stabilise slightly from the
coronavirus-led collapse that virtually paralysed the world's
second-biggest economy. China's currency eased on Monday after the People's Bank of
China unexpectedly cut its reverse repo rate by the most in
almost five years. The euro EUR=EBS was little changed at $1.1031. Traders
are bracing for data expected to show a rise in German
unemployment as the global economy reels from the coronavirus
pandemic.
Against the Swiss franc CHF=EBS , the dollar held steady at
0.9600, following a 0.8% gain on Monday.
Sterling GBP=D3 fell 0.46% to $1.2367, and against the
euro EURGBP=D3 , the pound fell 0.38% to 89.23 pence.
The pound remained under the gun after ratings agency Fitch
cut Britain's sovereign debt rating on Friday, saying debt
levels would jump as it ramped up spending to offset a near
shutdown of the economy. Traders are also awaiting the release of UK gross domestic
product later on Tuesday.
The New Zealand dollar NZD=D3 dipped after the country's
government extended a nationwide state of emergency for another
seven days to slow the spread of the coronavirus, but the kiwi
quickly regained its composure to trade steady at $0.5962.
The Australian dollar AUD=D3 held its ground at $0.6170.
The antipodean currencies have come under heavy selling
pressure over recent weeks as their close economic ties to China
and the global commodities trade make them vulnerable to the
coronavirus outbreak.