* Offshore yuan stabilises after breaching 7 per dollar
* Aussie, Kiwi extend losses to new multi-month lows
* Euro edges lower ahead of inflation data
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Adds new quote, updates prices)
LONDON, Jan 31 (Reuters) - The Australian dollar fell to a
four-month low on Friday while China's offshore yuan struggled
to find a footing on concerns about the economic impact of a
virus inside and outside China.
The World Health Organisation said late on Thursday that the
coronavirus outbreak was a global emergency, but opposed travel
restrictions and said China's actions so far would "reverse the
tide" of its spread, reassuring markets.
The United States and other countries, however, tightened
travel curbs on Friday and businesses said they were facing
supply problems because of the coronavirus in China.
The yen and Swiss franc, which tend to rally at times of
nervousness, were little changed on Friday but moves in other
currency pairs suggested caution remained high.
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=EBS , although that was some way off the 7.0038 level the
yuan dropped to on Thursday.
The death toll in China has now reached 213 and the number
of cases is 9,692 - up from 7,711 a day ago. It has spread to 18
countries. The United States and other countries have warned
citizens against visiting China. "While the WHO does not recommend a travel and trade
restriction, the impact on China's economy is likely to
materialise gradually, which will yield an international impact
as China plays an essential role in the global supply chain,"
Commerzbank economist Hao Zhou said.
The Australian and New Zealand dollars, both sensitive to
sentiment in China, fell to new multi-month lows.
The New Zealand dollar NZD=D3 dropped 0.5% and touched a
two-month low of $0.6454. The Australian dollar AUD=D3 lost
0.5% to $0.6683, a four-month low.
Both have shed more than 1.5% this week and the Aussie has
dropped more than 4% this month, leaving it poised for its worst
month since May 2016.
The euro slipped marginally after a first estimate showed
that the euro zone economy grew less than expected in the last
quarter of 2019, while core inflation slowed in January.
The common currency then recovered and was last up 0.1% at
$1.1035 EUR=EBS .
"We see support building around the $1.1000 level in
EUR/USD. Measures to help contain the virus look to be helping
ease fears of major global escalation which could help to slowly
lift risk appetite," MUFG analysts said in a note sent to
clients.
The dollar index, which measures the currency against a
basket of rivals, was unchanged at 97.841 .DXY .
Sterling extended its run after the Bank of England kept
interest rates on hold, citing a relatively more upbeat economic
outlook. The pound was last up 0.2% at $1.3122 GBP=D3 .
Versus the euro it rallied 0.2% to 84.07 pence EURGBP=D3 .
Sweden's crown, which is closely linked to sentiment towards
global growth and trade, weakened. The euro rose 0.5% to 10.68
crowns EURSEK=D3 , leaving the Swedish currency at its weakest
since late November.
The dollar also gained 0.5% versus the crown SEK=D3 .