* Trump unveils re-opening template; positive report on
virus drug
* Markets shrug off China GDP slump
* Aussie, kiwi lead gains
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SINGAPORE, April 17 (Reuters) - The dollar fell on Friday as
a news report on signs of success in a COVID-19 treatment drug
trial as well as early plans to re-open the U.S. economy drove
fresh optimism and risk appetite.
Even the first drop in Chinese economic growth since
quarterly records began in 1992 did not dent the mood as
investors sought silver linings in signs of a rebound in
industrial production.
The Australian and New Zealand dollars led gains, with both
rising about 0.8%, while the pound and euro also rose to recoup
some of the past two days' losses.
Medical news website STAT, citing a recorded discussion
between doctors involved in a clinical trial, said most of 125
patients given Gilead's GILD.O remdesivir drug at a hospital
in Chicago had recovered and been discharged. Gilead said anecdotal reports do not provide the data needed
to determine the safety or efficacy of remdesivir as a treatment
for COVID-19 and that it expects more data will be available at
the end of the month. "The market is looking for good news - grasping and hoping
and praying," said Imre Speizer, FX analyst at Westpac. "People
just want to get on the positive bandwagon."
The dollar last sat at $1.0866 per euro EUR= and $1.2504
per pound GDP= and firmed to 107.70 yen JPY= .
The Aussie AUD=D3 last bought $0.6371 and the kiwi
NZD=D3 at $0.6012.
The dollar has closely tracked risk sentiment through the
coronavirus crisis and remains at elevated levels as the safety
of cash in the world's reserve currency stays in demand.
Friday's dip reverses two days of gains on warnings of a
Great Depression-style slump in the world economy, though it is
set to end the week steady as optimism returns. MKTS/GLOB
U.S. President Donald Trump on Thursday announced guidelines
for a return to work in the world's biggest economy - a gradual,
three-stage process dependent on robust virus testing and
subject to state governors' discretion. But the crisis has already turned some 22 million Americans
out of work, and further market moves were capped by Gilead's
staid response and more worries on the economic outlook.
China's economy shrank 6.8% in the first quarter, the first
reversal since at least 1992, as the coronavirus outbreak
paralysed production and spending. Yet the decline was largely in line with expectations for a
6.5% contraction, and investors were encouraged by a
less-than-expected 1.1% drop in industrial output.
"It shows the economy is gradually recovering from the very
worst," said Nathan Chow, senior economist at DBS in Hong Kong.
"But I think in the second quarter we will see at most a
stabilisation, not a rebound, because cases are still rising for
most of China's trading partners, which will dampen orders going
forward. Based on this first-quarter number, I would say the
whole year GDP growth would be something around 2%."