* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Currencies react early to worries about China virus
* Risk aversion supports safe-haven yen
* Investors trying to measure economic impact as virus
spreads
By Stanley White
TOKYO, Jan 27 (Reuters) - The yen rose and the yuan fell in
offshore trade on Monday as worries that China is struggling to
contain the spread of a pneumonia-like virus sparked a bout of
risk aversion.
Japan's currency, often sought as a safe-haven in times of
uncertainty, rose to the highest in almost three weeks versus
the dollar, while the yuan fell to its lowest since Jan. 8.
China's cabinet announced it will extend the Lunar New Year
holidays to Feb. 2, to strengthen the prevention and control of
the new coronavirus, state broadcaster CCTV reported early on
Monday. The holidays had been due to end on Jan. 30.
Hong Kong has also banned the entry of visitors from China's
Hubei province, where the new coronavirus outbreak was first
reported, highlighting the difficulty officials face during a
peak travel season. Health authorities around the world are racing to prevent a
pandemic of the virus, which has infected more than 2,000 people
in China and killed 76.
There are concerns that tourism and consumer spending could
take a hit if the virus spreads further, which would discourage
investors from taking on excessive risk.
"There is a lot of uncertainty about how much further the
virus will spread, and this is behind the moves in currencies,"
said Yukio Ishizuki, foreign exchange strategist at Daiwa
Securities in Tokyo.
"I thought dollar/yen would be supported at 109, but it
broke through that, so now the next target is 108.50. This
risk-off mood is likely to continue for a while."
The yen JPY=EBS rose 0.3% to 108.91 per dollar on Monday,
reaching its strongest level since Jan. 8.
Japan's currency also jumped around 0.5% versus the
Australian AUDJPY= and New Zealand dollars NZDJPY= as
worries about the virus drew traders toward safe-haven
currencies and away from currencies that are more sensitive to
risk.
In the offshore market, the yuan CNH=D3 fell more than
0.3% to 6.9625 against the dollar, its weakest since Jan 8.
The dollar index .DXY against a basket of six major
currencies was little changed at 97.884.
Traders said market moves could be exaggerated due to low
liquidity, because financial markets in China, Hong Kong, and
Australia are closed for holidays.
The virus, which emerged late last year from illegally
traded wildlife at an animal market in the central Chinese city
of Wuhan, has spread to other countries, including Singapore,
South Korea, Canada, Japan, and the United States.
China's Hubei province, where Wuhan is located, said on
Monday that 76 people have died and 1,423 new cases of the
coronavirus outbreak have been identified as of end of Sunday.
The outbreak has evoked memories of Severe Acute Respiratory
Syndrome (SARS) in 2002-2003, another coronavirus which broke
out in China and killed nearly 800 people in a global pandemic.