* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Tracking the coronavirus: https://tmsnrt.rs/3aIRuz7
* Dollar recovers but sentiment is fragile
* Policymakers responding to external shocks
* Fed rate cut bets show more downside for greenback
By Stanley White
TOKYO, March 10 (Reuters) - The dollar recovered slightly on
Tuesday from heavy losses against the yen, the euro, and the
Swiss franc due to hopes for U.S. economic stimulus and a bounce
in Treasury yields.
The greenback started to grind higher as U.S. stock futures
rose after U.S. President Donald Trump said the White House will
hold news conference on Tuesday about economic measures in
response to the coronavirus outbreak.
U.S. Treasury Secretary Steve Mnuchin also said the White
House would hold a meeting with bank executives this week in a
sign the U.S. government is preparing to roll out more measures
to soften the blow from the spread of the flu-like virus.
However, analysts say it is too early to call a bottom in
the dollar, which was pummelled on Monday after a price war
between Saudi Arabia and Russia triggered the biggest daily rout
in oil prices since the 1991 Gulf War.
"Expectations for a coordinated policy response are
something that is evolving and ultimately this could help," said
Rodrigo Catril, senior FX strategist at National Australia Bank
in Sydney.
"But in the short term the dollar is driven by expectations
for U.S. Federal Reserve easing."
The dollar rose 0.63% to 102.34 yen JPY=EBS , pulling back
from the lowest in more than three years.
Against the euro EUR=EBS , the greenback rose 0.24% to
$1.1400 after falling on Monday to its lowest in more than a
year against the common currency.
The dollar rose 0.36% to 0.9283 Swiss franc CHF=EBS on
Tuesday after three days of heavy selling pushed it to the
lowest in almost five years. Data suggests the Swiss National
Bank is now ramping up its market interventions to weaken its
currency. Against the pound GBP=D3 , the dollar rose 0.39% to
$1.3075.
The dollar gradually accelerated after U.S. stock futures
opened higher ESc1 and Treasury yields US10YT=RR climbed off
record lows.
Oil futures also rose in Asia on Tuesday in a sign that
financial markets are trying to regain some composure, but many
traders warn that recent turmoil has been so dramatic that risks
are still tilted to the downside.
Financial markets, which were already reeling as investors
counted the mounting economic costs of a global coronavirus
epidemic, were dealt another severe blow on Monday by the sharp
sell-off in crude prices.
Money markets show the Fed, which already stunned investors
with a surprise 50 basis point rate cut last week, is likely to
ease policy further in the future. FEDWATCH
The Fed is also injecting cash into the banking system in a
sign of underlying financing stress in the world's largest
economy. Expectations for Fed easing are likely to bring the dollar
and U.S. yields back down, but for the time being on Tuesday the
greenback got a brief respite.
The currencies of oil-producing countries also managed to
rise slightly after receiving a mauling on Monday.
The Russian rouble RUB=EBS rose 0.5% against the dollar.
The Norwegian krone NOK=D3 also rose 0.2%. The Canadian dollar
CAD=D3 gained 0.1%, pulling back slightly from its lowest
since 2017.
The Australian dollar AUD=D3 , which is closely tied to the
global commodity trade and China's economy, rose 0.17% to
$0.6592. However, the New Zealand dollar NXD=D3 was little
changed at $0.6335.