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FOREX-U.S. jobs data and global coronavirus worries hold dollar firm

Published 10/02/2020, 02:00
Updated 10/02/2020, 02:09
© Reuters.  FOREX-U.S. jobs data and global coronavirus worries hold dollar firm
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* Dollar finds decade high vs Aussie, multi month high vs

* Yen firm as virus death toll rises

* Investors weigh economic damage as China returns to work

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Tom Westbrook

SINGAPORE, Feb 10 (Reuters) - The dollar held gains on

Monday after job market data provided the latest sign of U.S.

economic strength, while worries about the coronavirus epidemic

kept other trade-exposed currencies subdued.

Data on Friday showed U.S. job growth accelerated last

month, blowing past estimates, with particular strength in

construction - indicating the economy is in decent shape.

The death toll from the coronavirus outbreak, meanwhile,

rose again over the weekend, passing the total killed by the

SARS epidemic. It now stands at 908 in mainland China, where

there are a total of 40,171 infections. That has left trade-exposed currencies on the back foot, the

dollar at milestone highs against other majors and safe-haven

currencies such as the yen trading firmly.

The Australian dollar touched a fresh decade-low of $0.6657

in early trade and last stood at $0.6680 AUD=D3 . The New

Zealand dollar NZD=D3 touched a two-month low of $0.6397.

Against the euro, the greenback was just below a four-month

high of $1.0940 hit on Friday at $1.0948 EUR= . The pound was

parked near its lowest since November at $1.2890 GBP= .

"There is an overriding theme of U.S. dollar strength

against a backdrop where the data continues to suggest that the

U.S. economy is faring better than others," Rodrigo Catril,

senior FX strategist at National Australia Bank in Sydney.

Flows in to the buoyant U.S. stock market further supported

the currency, Catril said. MKTS/GLOB

"For now until we have more clarity on the coronavirus and

its full impact on economic activity, it's difficult to see the

dollar coming under much challenge."

Authorities in China were preparing for millions of people

to return to work on Monday following an extended Lunar New Year

break.

Yet with many of China's teeming cities turned into almost

ghost towns during the past two weeks, investors are looking

closely at how quickly the economy can regain its feet.

The trepidation had the Japanese yen JPY= trading firmly

in the morning at 109.64 per dollar.

"It's a key week, with factories and ports in China due to

open," ANZ analysts said in a note. "Whether that is achievable,

and to what extent, will provide direction about the extent of

ongoing disruption as the outbreak continues."

Chinese inflation data is due at 0130 GMT, and a significant

miss of expectations for year-on-year inflation running at 4.5%

may increase the size of the challenge for Chinese policymakers.

The yuan last traded steady at 7.0069 per dollar offshore

CNH= .

Elsewhere in Asia, investors continued to sell emerging

markets' currencies in favour of dollars and yen. That has left

the Thai baht THB= at an almost 8-month trough of 31.37 per

dollar and the Singapore dollar 3% weaker in two weeks.

EMRG/FRX

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