* Safe-haven yen, Swiss franc dip versus the dollar
* Sterling under pressure
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Dhara Ranasinghe
LONDON, Feb 3 (Reuters) - The safe-haven yen and Swiss franc
weakened on Monday, retreating from multi-week highs against the
dollar as fears surrounding the spread of coronavirus in China
appeared to ebb for now.
Chinese markets took a beating in the first trading session
after an extended Lunar New Year break.
Yet this was mostly a product of selling pressure that had
built up over the holiday and not a reflection of new market
fears, analysts said.
European stock markets inched higher at the open .STOXX ,
U.S. stock futures rallied ESc1 1YMc1 and safe-haven
currencies came under selling pressure.
The yen fell a fifth of a percent to 108.52 per dollar
JPY=EBS , off a three-week high of 108.305 set on Friday.
The Swiss franc changed hands at 0.96395 franc per dollar
CHF=EBS , off more than two-week lows.
"Chinese markets are just catching up with the risk off
moves in the past week," said Adam Cole, chief currency
strategist at RBC Capital Markets in London.
"The fact that we haven't had any more bad news over the
weekend means that there is a bit of a sigh of a relief, so
dollar/yen and risk markets are faring better."
In an effort to head off any panic, the Chinese government
took a range of steps to shore up an economy hit by travel curbs
and business shut-downs because of the epidemic, including
cutting its key interest rate. The Chinese yuan remained on the back foot. Offshore, the
currency fell to its lowest since mid-December at around 7.0230
per dollar CNH=D3 while the onshore yuan fell over 1% from its
levels before the holiday to 7.0268 per dollar CNY=CFXS .
The Australian dollar fetched $0.66945 AUD=D4 , up 0.15% on
the day but holding near a 10-1/2-year low of $0.6670 touched
last October.
The currency is often regarded as a proxy for the yuan,
being more freely traded and because of Australia's reliance on
trade with China.
"Havens like the yen and dollar were slightly lower while
riskier and Asian currencies like the Aussie are off recent
lows." London and Capital Group, Jasper Lawler told clients.
But he added: "There will need to be a let up in equity
market selling and some other macro catalyst, perhaps U.S.
non-farm payrolls to see the ‘risk-on/off' theme in forex
reverse."
Latest U.S. jobs numbers, regarded as a key economic
indicator, are released at the end of the week.
The euro stood at $1.1073 EUR=EBS , down 0.2% on the day,
while sterling tumbled 0.6% to $1.3126 GBP=D4 .
Britain laid out a tough opening stance for future talks
with the European Union following its exit last week, saying it
would set its own agenda rather than meeting the bloc's rules.
Looking ahead, traders will keep an eye on the start of a
U.S. state-by-state process to pick presidential nominees, with
Iowa holding caucuses on Monday.