FOREX-Dollar steadies near multi-week lows, yuan shines again

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar edges lower as investors focus on economic recovery
* Coronavirus remains a risk to markets
* Traders avoid big positions before summer holidays

By Stanley White
TOKYO, July 9 (Reuters) - The dollar nursed losses against
most currencies on Thursday as a rally in riskier assets such as
global equities and commodities put a dent in safe-haven demand
for the U.S. currency.
China's yuan rose to a four-month high against the
greenback, extending recent gains as investors of all stripes
increase positions in Chinese stocks due to growing optimism
about the world's second-largest economy.
Lingering worries about the spread of the coronavirus and a
light calendar in Asia could keep some currency pairs in a tight
range, but the dollar's losses are gradually increasing as
sentiment favours riskier bets on long-term economic growth.
"Rising stocks and a dip in Treasury yields are slight
negatives for the dollar, but the market can't move too far
because we still have to worry about the virus," said Minori
Uchida, head of global market research at MUFG Bank.
"A lot of major U.S. economic data have been positive, so
this will be less of a trading factor going forward. People are
looking for cues from stocks, yields, and hedging costs."
The dollar bought 0.9381 Swiss franc CHF= on Thursday in
Asia, close to the lowest in almost four months.
Against the euro EUR= , the dollar was quoted at $1.1339,
close to a three-week low.
The euro could get a boost later in the day as Germany is
scheduled to release export data. Economists expect shipments
from the euro zone's largest economy to rebound sharply in May
from a large decline in the previous month.
The greenback was also close to a three-week low against the
pound GBP= , last trading at $1.2613.
Sterling held steady at 89.91 pence per euro EURGBP=D3 .
The dollar was little changed at 107.33 yen JPY= .
Asian stocks rose on Thursday, following gains in the
tech-heavy Nasdaq .IXIC to a record closing high on Wednesday.
The onshore yuan CNY=CFXS rose to 6.9875 per dollar,
breaking past the closely watched level of 7 to reach the
highest since March 17.
China's currency has been a star performer against the
dollar as investors shrug off diplomatic tension between
Washington and Beijing to focus on China's improving economy and
its attractive technology sector.
The yuan has risen around 2.6% from a seven-month trough
against the dollar set on May 27.
While some investors are reluctant to take big positions
before the traditional summer holiday season amid uncertainty
around the coronavirus pandemic, analysts said sentiment favours
more U.S. dollar declines as investors try to look past a recent
spike in coronavirus cases in some countries.
Elsewhere in currencies, the Australian dollar AUD=D3
stood at $0.6978, close to its strongest level in a month.
The New Zealand dollar NZD=D3 was little changed at
$0.6573, also close to a one-month high.