* Pneumonia-like virus in China hurts risk appetite
* Euro gains before ECB, as data beats expectations
* Sterling up after strong jobs report
(New throughout, updates prices, market activity and comments
to U.S. market open, new byline, changes dateline, previous
LONDON)
By Karen Brettell
NEW YORK, Jan 21 (Reuters) - China's yuan tumbled on Tuesday
and safe-haven currencies rallied as the spread of a
pneumonia-like virus in China dampened risk appetite.
China reported a fourth death from a new coronavirus as the
number of cases continued to rise, just as hundreds of millions
of Chinese prepared to travel for the Lunar New Year holiday.
Global stocks fell as the outbreak rekindled memories of the
severe acute respiratory syndrome (SARS) in 2002-2003, another
coronavirus which broke out in China and killed nearly 800
people in a global pandemic. MKTS/GLOB
"You've got a stronger yen, a stronger Swiss franc and risk
aversion is setting in across everything," said Kit Juckes, an
analyst at Societe Generale.
The dollar was last up 0.54% against the offshore yuan at
6.904 per dollar CNH= .
Currencies linked to Chinese trade and tourism also dropped.
The Australian dollar AUD= touched its lowest in over a month
at $0.6842, before rebounding to $0.6867, down 0.07% on the day.
The dollar weakened 0.10% against the Japanese yen JPY= to
110.07 per dollar and was down 0.06% against the Swiss franc
CHF= at 0.9673 per dollar.
The Bank of Japan earlier nudged up its economic growth
forecasts and was cautiously optimistic about the global
outlook, though it said ongoing risks meant it was far too soon
to consider scaling down its massive stimulus program.
The euro gained against the dollar as better than expected
data in the region overcame any safety bid for the greenback.
A survey from Germany's ZEW research institute showed that
the mood among German investors brightened far more than
expected in January. The single currency was also supported by expectations that
the European Central Bank will offer a brighter view of the
economy when it meets on Thursday.
“We could see a little bit more cautious optimism there,
that's getting people a little bit more excited about the euro,”
said Mazen Issa, senior FX strategist at TD Securities in New
York.
The euro EUR= gained 0.15% to $1.1111.
Sterling benefited from news that Britain's economy created
jobs at its fastest rate in nearly a year in the three months to
November, potentially undermining the case for a Bank of England
interest rate cut next week. The pound was last up 0.42% at $1.3063 GBP= .
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Currency bid prices at 9:20AM (1420 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1111 $1.1094 +0.15% -0.88% +1.1118 +1.1086
Dollar/Yen JPY= 110.0700 110.1800 -0.10% +1.11% +110.2100 +109.9000
Euro/Yen EURJPY= 122.32 122.23 +0.07% +0.30% +122.3600 +121.8700
Dollar/Swiss CHF= 0.9673 0.9679 -0.06% -0.05% +0.9689 +0.9662
Sterling/Dollar GBP= 1.3063 1.3009 +0.42% -1.48% +1.3083 +1.2996
Dollar/Canadian CAD= 1.3054 1.3046 +0.06% +0.52% +1.3077 +1.3044
Australian/Doll AUD= 0.6867 0.6872 -0.07% -2.19% +0.6880 +0.6845
Euro/Swiss EURCHF= 1.0749 1.0741 +0.07% -0.95% +1.0750 +1.0732
Euro/Sterling EURGBP= 0.8505 0.8526 -0.25% +0.60% +0.8535 +0.8498
NZ NZD= 0.6607 0.6606 +0.02% -1.89% +0.6615 +0.6589
Dollar/Dollar
Dollar/Norway NOK= 8.9406 8.9256 +0.17% +1.85% +8.9675 +8.9241
Euro/Norway EURNOK= 9.9353 9.9033 +0.32% +0.98% +9.9435 +9.9034
Dollar/Sweden SEK= 9.4974 9.5145 -0.05% +1.60% +9.5387 +9.4907
Euro/Sweden EURSEK= 10.5545 10.5599 -0.05% +0.81% +10.5760 +10.5502