FOREX-Dollar surges on funding crunch as U.S. stimulus falters

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Dollar retains advantage amid coronavirus crisis
* U.S. lawmakers trying to pass fiscal stimulus
* Travel curbs raise risk of global recession

By Stanley White
TOKYO, March 23 (Reuters) - The dollar rose against major
currencies on Monday as doubts about the U.S. government's
response to the coronavirus pandemic and worries about
tightening liquidity triggered a renewed flight into cash.
The dollar rose against sterling toward its strongest since
at least 1985. The U.S. currency hit the highest in almost three
years against the euro.
Against the antipodeans, the greenback rose toward a 17-year
high against the Australian dollar and approached an 11-year
peak against the New Zealand dollar as investors dumped riskier
assets.
The U.S. Senate failed to advance a coronavirus stimulus
bill on Sunday, but negotiations are ongoing and President
Donald Trump said Congress is close to reaching an agreement.
Policymakers around the world are scrambling to cut interest
rates and roll out fiscal stimulus, as severe restrictions on
personal movement aimed at curbing the spread of the coronavirus
slow the global economy.
Major central banks have also ramped up efforts to ease a
global dollar funding crunch, but the U.S. currency remains in
demand due to the high degree of uncertainty about the unknown
flu-like virus.
The dollar rose 0.96% against the pound GBP=D3 to $1.1559,
approaching the strongest since at least 1985.
The dollar gained 0.33% to EUR=EBS $1.0360, the strongest
since April 2017.
The greenback closed in on multi-year highs against the
Australian AUD=D3 and New Zealand NZD=D3 dollars.
Against the yen, the currency rose 0.11% to 110.92.
Investors have been liquidating positions in safe-havens and
other riskier investments to keep their money in dollars due to
the uncertainty caused by the epidemic.
Republicans and Democrats in the U.S. Senate scrambled to
complete a deal on a $1 trillion-plus bill aimed at stemming the
coronavirus pandemic's economic fallout for workers, industries
and small businesses.
But there was no sign of an overarching deal between
negotiators, despite Republicans' claims of bipartisan agreement
on specific issues including unemployment insurance and small
business assistance.
Nearly one in three Americans were ordered to stay home on
Sunday to slow the spread of the disease, while Italy banned
internal travel as deaths there reached 5,476. Trump has approved disaster deceleration requests from New
York and Washington, while St. Louis Federal Reserve President
James Bullard warned unemployment could reach 30% unless more
was done fiscally. Global markets have been upended in recent weeks as the
coronavirus spread from central China and governments responded
with increasingly strict restrictions on travel and daily life,
disrupting businesses and prompting consumers to stay at home
and rein in spending.
The virus has now been reported in more than 100 countries
and has claimed more than 8,000 lives.