* Yen falls to two-week low; franc hits one-week trough
* China says it achieved positive results in virus control
* China says to halve addition tariffs on U.S. goods
* Euro tumbles to four-month low after German data
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Recasts, adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Feb 6 (Reuters) - The dollar climbed to four-month highs against the euro and two-week peaks
versus the yen on Thursday, bolstered by recent strong U.S. economic numbers as well as ebbing fears about
the latest coronavirus that broke out in China few weeks ago.
The safe-haven yen and Swiss franc struggled for a fourth straight session against the dollar, as
investors' tolerance for risk increased, encouraged by the Chinese government's efforts to contain the
latest coronavirus and limit the economic fallout. The Swiss currency fell to its weakest level in more
than a week.
The euro, meanwhile, also tumbled, sliding to a four-month low against the dollar after poor German
data, which was in stark contrast to the more robust U.S. economic reports this week.
"U.S. data hasn't been terrible for the most part," said Kathy Lien, managing director of BK Asset
Management in New York.
"And it looks like the virus is going to be contained and it's just a matter of time. So until data
proves that the virus has a damaging impact on the economy, the market will continue to focus on earnings,
which have been relatively good, as well as the strong U.S. data," she added.
Chinese President Xi Jinping told Saudi Arabia's King Salman that China has achieved "positive"
results in its prevention and control efforts in fighting the new coronavirus, the country's official
Xinhua news agency reported on Thursday. That further added to the optimism. The People's Bank of China (PBOC), for its part, has pumped hundreds of billions of dollars into the
financial system this week to cushion the potentially adverse economic impact of the virus.
"We're seeing credible responses from monetary authorities, in China and it looks like it's soothing
market fears of a more entrenched slowdown in the Chinese economy," said Simon Harvey, FX market analyst
at Monex Europe in London.
That said, the coronavirus has now claimed 563 lives, with more than 28,000 confirmed infections in
China. A Reuters tally also showed that 260 cases have been reported in 31 countries and regions outside
mainland China. In afternoon trading, the dollar rose 0.1% against the yen to 109.99 JPY= , and gained 0.2% versus
the franc to 0.9756 CHF=
The euro fell against the dollar, weighed down by data showing German industrial orders unexpectedly
plunged in December. Contracts for German goods fell 2.1% in December from November, the biggest drop
since February. The euro was last down 0.2% at $1.0978 EUR= .
The euro's losses pushed the dollar index up 0.2% at 98.524 .DXY , which also benefited from
Thursday's solid U.S. initial jobless claims and productivity data. The dollar index earlier rose to 98.572, its highest since mid-October.
The offshore Chinese yuan, meanwhile, was flat against the greenback, trading at 6.9786 yuan per
dollar CNH=D3 .
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Currency bid prices at 3:04 PM (2004 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0977 $1.0997 -0.18% -2.08% +1.1013 +1.0965
Dollar/Yen JPY= 109.9500 109.8000 +0.14% +1.00% +109.9900 +109.7300
Euro/Yen EURJPY= 120.73 120.77 -0.03% -1.00% +121.0100 +120.5800
Dollar/Swiss CHF= 0.9750 0.9732 +0.18% +0.74% +0.9756 +0.9732
Sterling/Dollar GBP= 1.2924 1.3000 -0.58% -2.53% +1.3003 +1.2922
Dollar/Canadian CAD= 1.3286 1.3278 +0.06% +2.31% +1.3308 +1.3269
Australian/Doll AUD= 0.6732 0.6745 -0.19% -4.12% +0.6764 +0.6730
Euro/Swiss EURCHF= 1.0705 1.0704 +0.01% -1.35% +1.0724 +1.0696
Euro/Sterling EURGBP= 0.8494 0.8457 +0.44% +0.47% +0.8495 +0.8460
NZ NZD= 0.6460 0.6472 -0.19% -4.10% +0.6483 +0.6455
Dollar/Dollar
Dollar/Norway NOK= 9.2219 9.2102 +0.13% +5.05% +9.2550 +9.1819
Euro/Norway EURNOK= 10.1248 10.1290 -0.04% +2.92% +10.1592 +10.0979
Dollar/Sweden SEK= 9.6261 9.5839 +0.27% +2.98% +9.6443 +9.5772
Euro/Sweden EURSEK= 10.5688 10.5400 +0.27% +0.95% +10.5835 +10.5329
EURUSD and CESI https://tmsnrt.rs/2tyTER0
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