* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Saikat Chatterjee
LONDON, Jan 30 (Reuters) - The Japanese yen and the Swiss
franc gained on Thursday as the rising death toll from a virus
spreading in China sent investors scurrying to the shelter of
perceived safe-haven currencies while China's yuan tumbled to a
one-month low.
The Chinese yuan in the offshore market CNH=D3 , widely
considered as a barometer of risk sentiment towards Chinese
assets as mainland and Hong Kong markets are shut, tumbled to a
one-month low below the psychological 7 yuan per dollar level in
early London trading, its lowest level since late December.
"A risk off theme continues due to the rising infection and
death tolls from the coronavirus in China and that is also
affecting the Chinese currency which is trading at new lows for
the year," said John Marley at FX risk management specialist
Smart Currency Business.
Risk aversion also knocked the Aussie AUD=D3 and the Kiwi
NZD=D3 dollars lower while the Japanese yen JPY=EBS and the
Swiss franc CHF=EBS strengthened.
As the new pneumonia-like disease spread quickly in China,
the dollar is emerging as an ultimate safe-haven destination,
with its high interest rates relative to the rest of its
developed market peers also boosting its appeal. The dollar is the best performing currency among G10
currencies in January, with the dollar index =USD rising 1.6%
so far this month to hit a two-month high.
"The U.S. dollar and the yen have been the safe havens of
choice as the virus spreads and we expect these safe havens will
remain well supported in the next few weeks," Colin Asher, a
senior economist at Mizuho Bank in London, said.
The dollar index last stood at 98.04, flat on the day but
not far from Wednesday's two-month high of 98.19.
The yen firmed 0.1% to 108.90 yen per dollar JPY=, edging
close to a three-week high of 108.73 touched last week.
The Japanese currency has fallen 0.3% against the dollar so
far this month but risen against most others, adding 1.6% versus
the euro EURJPY= and 3.9% on the Australian dollar AUDJPY= .
Among the biggest losers this month is the Aussie, which has
lost 3.9% so far this month, the second worst performing
currency in the G10, behind a 4.3% drop in the Norwegian crown
NOK= , which has been hit by falls in oil prices.
G10FX https://tmsnrt.rs/2tQTJzP
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