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FOREX-Safe-haven yen, Swiss franc advance as virus fears snowball

Published 31/01/2020, 21:25
© Reuters.  FOREX-Safe-haven yen, Swiss franc advance as virus fears snowball
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* Offshore yuan stabilizes after breaching 7 per dollar

* Aussie, Kiwi extend losses to new multi-month lows

* Death toll from virus rises to 213, all in China

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Adds new comment, updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, Jan 31 (Reuters) - The safe-haven yen and Swiss franc jumped to multiweek highs on Friday as

worries about the global economic impact of the latest coronavirus outbreak in China intensified.

The yen rose to a three-week high against the dollar, while the Swiss franc climbed to a two-week

peak.

The Australian dollar fell to a four-month low against the U.S. dollar, while China's offshore yuan

struggled to find a footing in the wake of the virus outbreak.

The World Health Organization said late Thursday that the coronavirus outbreak was a global emergency,

prompting the United States and other countries to tighten travel curbs on Friday. All three major U.S. airlines -- United Airlines Holdings Inc UAL.O , Delta Air Lines Inc DAL.N ,

and American Airlines Group Inc AAL.O -- announced the cancellation of flights to mainland China on

Friday after the U.S. State Department elevated a travel advisory over concerns about the coronavirus.

"When we take a look at the overall picture heading into the week, there was some optimism that we

could still see strong earnings. There's anticipation that eventually we're going to see a trickle-down

effect of the Phase 1 trade deal with China," said Edward Moya, senior market strategist at OANDA in New

York.

"Right now, none of that matters. It's all about the virus and its impact on the Chinese economy and

its trading partners," he added.

U.S. data on consumer spending and personal income did push the dollar a little higher against the yen

and euro earlier, as core consumer prices as measured by the personal consumption expenditures (PCE) price

index rose 0.2% last month after advancing just 0.1% the previous four months. But the U.S. data's impact was short-lived.

Investors remained transfixed on the casualties from the virus and feared its impact on the global

economy, including businesses such as airlines and hotels.

The death toll rose to 213 on Friday, all in China. The number of confirmed cases in China has risen

beyond 9,800, Beijing's envoy to the United Nations in Vienna said, while some 131 cases have been

reported in 23 other countries and regions. China's offshore yuan gave up earlier gains and was last down against the dollar. The U.S. currency

added 0.1% to 6.9884 CNH= , although that was some way off the 7.0038 level the yuan dropped to on

Thursday.

The dollar fell 0.5% against the yen to 108.35 yen JPY= in afternoon trading, after earlier dropping

to a three-week low of 108.33 yen. The greenback also slid to a two-week trough versus the Swiss franc and

was last at 0.9637 franc CHF= .

The Australian and New Zealand dollars, both sensitive to sentiment in China, fell to new multimonth

lows.

The New Zealand dollar NZD=D3 dropped 0.5% to US$0.6463, after earlier touching a two-month low. The

Australian dollar AUD=D3 lost 0.4% to US$0.6695, hitting a four-month low earlier.

========================================================

Currency bid prices at 3:17 PM (2017 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.1088 $1.1030 +0.53% -1.09% +1.1090 +1.1018

Dollar/Yen JPY= 108.3500 108.9500 -0.55% -0.47% +109.1300 +108.3300

Euro/Yen EURJPY= 120.15 120.19 -0.03% -1.48% +120.3900 +120.0400

Dollar/Swiss CHF= 0.9632 0.9693 -0.63% -0.48% +0.9713 +0.9631

Sterling/Dollar GBP= 1.3200 1.3094 +0.81% -0.45% +1.3204 +1.3085

Dollar/Canadian CAD= 1.3234 1.3208 +0.20% +1.91% +1.3252 +1.3195

Australian/Doll AUD= 0.6693 0.6719 -0.39% -4.67% +0.6729 +0.6684

Euro/Swiss EURCHF= 1.0681 1.0695 -0.13% -1.58% +1.0706 +1.0677

Euro/Sterling EURGBP= 0.8400 0.8424 -0.28% -0.64% +0.8434 +0.8388

NZ NZD= 0.6464 0.6485 -0.32% -4.04% +0.6494 +0.6455

Dollar/Dollar

Dollar/Norway NOK= 9.1951 9.1791 +0.17% +4.75% +9.2453 +9.1665

Euro/Norway EURNOK= 10.1978 10.1273 +0.70% +3.66% +10.2192 +10.1124

Dollar/Sweden SEK= 9.6251 9.6352 +0.44% +2.97% +9.6836 +9.6163

Euro/Sweden EURSEK= 10.6755 10.6291 +0.44% +1.97% +10.6901 +10.6225

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