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FOREX-Dollar gains on optimism coronavirus will be contained

Published 12/02/2020, 15:43
Updated 12/02/2020, 15:45
© Reuters. FOREX-Dollar gains on optimism coronavirus will be contained
USD/JPY
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NZD/USD
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* Stock markets hit record highs as risk sentiment improves

* Optimism grows that coronavirus will be contained

* New Zealand dollar jumps as rate cut no longer projected

(New throughout, updates prices, market activity and comments

to U.S. market open, new byline, changes dateline, previous

LONDON)

By Karen Brettell

NEW YORK, Feb 12 (Reuters) - The greenback gained on

Wednesday, but held just below four-month highs reached a day

earlier against the euro, as investors put more money into U.S.

stock markets on greater optimism that the coronavirus will be

contained.

China reported its lowest number of new coronavirus cases in

nearly two weeks, lending weight to a forecast by its foremost

medical adviser for the outbreak to end by April - but a global

expert warned it was only beginning elsewhere. “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.”

Wall Street opened at a record high. .N Investors grew

more comfortable with risk, especially on the view that central

banks are likely to provide more 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 0.21% against the Japanese yen JPY= to

110 yen.

The euro dipped 0.05% against the greenback to $1.0909. It

fell to $1.0889 on Tuesday, the lowest since Oct. 1.

The greenback has benefited 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.

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 9:27AM (1427 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.0909 $1.0914 -0.05% -2.69% +1.0925 +1.0900

Dollar/Yen JPY= 110.0000 109.7700 +0.21% +1.05% +110.1300 +109.7800

Euro/Yen EURJPY= 120.01 119.84 +0.14% -1.59% +120.2900 +119.7700

Dollar/Swiss CHF= 0.9756 0.9757 -0.01% +0.81% +0.9764 +0.9741

Sterling/Dollar GBP= 1.2969 1.2951 +0.14% -2.19% +1.2991 +1.2950

Dollar/Canadian CAD= 1.3263 1.3286 -0.17% +2.13% +1.3295 +1.3258

Australian/Doll AUD= 0.6741 0.6713 +0.42% -3.99% +0.6749 +0.6713

Euro/Swiss EURCHF= 1.0643 1.0652 -0.08% -1.93% +1.0662 +1.0635

Euro/Sterling EURGBP= 0.8409 0.8425 -0.19% -0.53% +0.8432 +0.8401

NZ NZD= 0.6471 0.6401 +1.09% -3.93% +0.6487 +0.6402

Dollar/Dollar

Dollar/Norway NOK= 9.2036 9.2480 -0.48% +4.84% +9.2496 +9.1989

Euro/Norway EURNOK= 10.0404 10.0964 -0.55% +2.06% +10.1010 +10.0370

Dollar/Sweden SEK= 9.6253 9.6358 -0.19% +2.97% +9.6421 +9.6137

Euro/Sweden EURSEK= 10.5000 10.5200 -0.19% +0.29% +10.5217 +10.4900

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