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FOREX-Dollar slips in choppy trading for month-end

Published 30/04/2020, 15:58
© Reuters.
EUR/USD
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DX
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* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Adds details, updates prices; changes byline, dateline;
previous LONDON)
By Karen Brettell
NEW YORK, April 30 (Reuters) - The dollar fell on Thursday
in choppy trading as investors rebalanced portfolios for
month-end and after U.S. stock markets pared losses, but
remained lower on the day.
Month-end rebalancing is seen as negative for the greenback
with investors expected to sell the dollar against other major
currencies.
The dollar had briefly gained earlier on Thursday as stocks
slipped and after the European Central Bank disappointed some
investors who had expected that it would expand bond purchases
to junk bonds. It was "a combination of weaker risk and short-term reaction
to the ECB announcement that there would be no QE expansion,”
said Vassili Serebriakov, an FX strategist at UBS in New York.
The euro EUR= was last up 0.18% at $1.0883, the highest
since April 16, after dropping to $1.0834 after the ECB meeting.
The dollar index against a basket of currencies =USD fell
0.22% to 99.27.
The greenback has weakened from a more than three-year peak
of 102.99 in late March as global central banks launched massive
stimulus measures to protect economies from the coronavirus
outbreak.
Improving risk appetite, if it continues, is likely to dent
the dollar even further. Investors are getting more optimistic
that economies globally may be closer to reopening as the number
of cases of the novel coronavirus decline.
“If we are seeing a bit of a rebound in risk, and I would
say the last week or so has been quite encouraging on that
front, then that would suggest that this would take some of the
upward pressure off the dollar,” said Craig Erlam, senior market
analyst at OANDA in London.
The Federal Reserve on Wednesday kept interest rates near
zero and promised to expand emergency programs as needed to help
the battered economy. On Thursday the Fed also said it was expanding the scope and
eligibility of its soon-to-launch "Main Street Lending Program"
to reach a greater range of small- and medium-sized businesses
seeking emergency financing to weather the disruption caused by
the coronavirus pandemic. The cross-currency basis swap for swapping yen LIBOR for
dollar LIBOR JPYCBS1Y=ICAP turned negative on Thursday for the
first time in a month, indicating strong overseas demand for
dollars for month-end.


========================================================
Currency bid prices at 10:45AM (1445 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0893 $1.0873 +0.18% -2.83% +1.0899 +1.0834
Dollar/Yen JPY= 106.6000 106.7000 -0.09% -2.08% +106.8700 +106.4200
Euro/Yen EURJPY= 116.14 115.95 +0.16% -4.76% +116.1900 +115.5600
Dollar/Swiss CHF= 0.9695 0.9735 -0.41% +0.18% +0.9759 +0.9690
Sterling/Dollar GBP= 1.2548 1.2464 +0.67% -5.36% +1.2554 +1.2430
Dollar/Canadian CAD= 1.3891 1.3877 +0.10% +6.97% +1.3912 +1.3850
Australian/Doll AUD= 0.6523 0.6555 -0.49% -7.09% +0.6569 +0.6491
ar
Euro/Swiss EURCHF= 1.0562 1.0591 -0.27% -2.67% +1.0599 +1.0547
Euro/Sterling EURGBP= 0.8679 0.8719 -0.46% +2.66% +0.8742 +0.8674
NZ NZD= 0.6140 0.6131 +0.15% -8.85% +0.6152 +0.6109
Dollar/Dollar
Dollar/Norway NOK= 10.2633 10.3088 -0.44% +16.92% +10.3612 +10.2562
Euro/Norway EURNOK= 11.1810 11.2208 -0.35% +13.65% +11.2418 +11.1521
Dollar/Sweden SEK= 9.7731 9.8314 -0.53% +4.55% +9.8625 +9.7652
Euro/Sweden EURSEK= 10.6453 10.7016 -0.53% +1.68% +10.7176 +10.6365


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