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FOREX-Dollar gives up losses as coronavirus spreads across U.S.

Published 25/03/2020, 15:29
© Reuters.
EUR/USD
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DX
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* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds quotes, updates prices, new byline, changes dateline,
previous LONDON)
By Karen Brettell
NEW YORK, March 25 (Reuters) - The dollar gave up earlier
losses against a basket of currencies on Wednesday as the
fast-spreading coronavirus outbreak accelerated across the
United States, even after U.S. senators and Trump administration
officials reached agreement on a $2 trillion stimulus package.
The virus spread beyond the hot spots of New York,
California and Washington state as Louisiana and Iowa were
declared federal disaster areas. Investors have taken some comfort in stimulus measures meant
to blunt the economic impact of the virus, but are concerned
that market volatility will remain until the worst of the health
crisis is behind us.
"The pandemic is still spreading and policymakers have put
all their chips on the table. We will have to wait now to see
how things will pan out," said Kenneth Broux, FX strategist at
Societe Generale.
The Senate will vote on the stimulus bill later on Wednesday
and the House of Representatives is expected to follow suit soon
after.
Republican Senate Majority Leader Mitch McConnell said the
package would rush checks to help Americans pay bills during job
layoffs related to the outbreak, expand unemployment insurance
and deliver emergency loans to small businesses. The dollar index was little changed on the day at 101.68.
=USD
The euro EUR= was up nearly 0.19% versus the greenback at
$1.0807, after earlier rising as far as $1.0850.
The single currency was weighed down by weak European
economic data on Wednesday.
Germany's economy could contract by as much as 20% this year
due to the impact of the coronavirus, an Ifo economist said on
Wednesday, as German business morale tumbled to its lowest level
since the global financial crisis in 2009. “The grim data was consistent with Europe's biggest economy
sliding into recession,” said Joe Manimbo, senior market analyst
at Western Union Business Solutions, in Washington. “Underlying
sentiment toward the euro remains bearish.”
Investors are also continuing to absorb the Federal
Reserve's unprecedented announcement on Monday that it would
launch unlimited quantitative easing, and how that will impact
the greenback. “QE was first introduced back in 2008, the dollar initially
weakened but then recovered to even stronger levels. We believe
that dynamic will likely unfold now,” said Win Thin, global head
of currency strategy at Brown Brothers Harriman in New York.

========================================================
Currency bid prices at 10:19AM (1419 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0807 $1.0787 +0.19% -3.60% +1.0850 +1.0762
Dollar/Yen JPY= 111.4800 111.2100 +0.24% +2.41% +111.6400 +110.7600
Euro/Yen EURJPY= 120.48 119.97 +0.43% -1.21% +120.8900 +119.5500
Dollar/Swiss CHF= 0.9797 0.9815 -0.18% +1.23% +0.9836 +0.9784
Sterling/Dollar GBP= 1.1726 1.1757 -0.26% -11.56% +1.1975 +1.1716
Dollar/Canadian CAD= 1.4366 1.4459 -0.64% +10.63% +1.4482 +1.4297
Australian/Doll AUD= 0.5959 0.5957 +0.03% -15.13% +0.6072 +0.5936
ar
Euro/Swiss EURCHF= 1.0588 1.0587 +0.01% -2.43% +1.0627 +1.0584
Euro/Sterling EURGBP= 0.9214 0.9175 +0.43% +8.99% +0.9225 +0.9056
NZ NZD= 0.5814 0.5826 -0.21% -13.69% +0.5911 +0.5796
Dollar/Dollar
Dollar/Norway NOK= 10.9860 11.0553 -0.63% +25.18% +11.1458 +10.8023
Euro/Norway EURNOK= 11.8797 12.0033 -1.03% +20.75% +12.0280 +11.6771
Dollar/Sweden SEK= 10.1755 10.1100 +0.02% +8.85% +10.1817 +10.0410
Euro/Sweden EURSEK= 10.9855 10.9830 +0.02% +4.93% +10.9857 +10.8786



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