April 27, 2020 / 2:06 PM / a month ago

FOREX-Dollar dips as plans to reopen economies boosts risk sentiment

    * Japanese yen rises to two-week high vs U.S. dollar
    * Aussie dollar highest against U.S. dollar since March 12
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Adds details, updates prices; changes byline, dateline;
previous LONDON)
    By Karen Brettell
    NEW YORK, April 27 (Reuters) - The U.S. dollar fell across
the board on Monday as several countries laid out plans to ease
restrictions on businesses that have been closed due to the
novel coronavirus outbreak, boosting risk appetite and reducing
demand for the safe-haven U.S. currency.
    "Reopening plans have fed into positive market sentiment to
start the week," said Win Thin, global head of currency strategy
at Brown Brothers Harriman in New York. "The dollar is under
some pressure."
    Italy, which has the world's second-highest rate of
coronavirus deaths, is among the countries that have laid out
plans to allow businesses to reopen.
    In the United States, a number of states have eased
restrictions on businesses, and more are ready to follow.

    The dollar fell 0.34% against a basket of currencies
to 99.90.
    The euro gained 0.30% to $1.0852. 
    The single currency was also supported after credit-rating
agency Standard & Poor’s on Friday reaffirmed Italy's BBB
rating. Many had expected a downgrade.
    The yen gained after the Bank of Japan expanded its stimulus
to help companies hit by the coronavirus crisis, pledging to buy
an unlimited amount of bonds to keep borrowing costs low as the
government tries to spend its way out of the deepening economic
pain.
    The dollar fell 0.47% against the Japanese currency
to 107 yen, the lowest since April 15.
    Traders are next focused on a U.S. Federal Reserve meeting
that will end on Wednesday and a European Central Bank (ECB)
meeting on Thursday.
    The Australian dollar rose after the Australian states of
Queensland and Western Australia said they would ease social
distancing rules this week.
    The Aussie gained 1.25% against the greenback to
$0.6465, the highest since March 12.
    Some analysts, however, say the improvement in risk appetite
is premature since lockdown measures are still in place and it
will take time for people to return to their behaviour before
the outbreak of COVID-19, the respiratory illness caused by the
new coronavirus.
    "We are a bit concerned of the market rally we have seen in
risk assets,” said Athanasios Vamvakidis, global head of G10 FX
strategy at Bank of America Merrill Lynch. "We're still
risk-off, we still like the dollar."
    ========================================================
    Currency bid prices at 9:40AM (1340 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.0852        $1.0820     +0.30%         -3.19%      +1.0861     +1.0810
 Dollar/Yen       JPY=        107.0000       107.5000    -0.47%         -1.71%      +107.6200   +107.0000
 Euro/Yen         EURJPY=     116.12         116.35      -0.20%         -4.78%      +116.5000   +116.1100
 Dollar/Swiss     CHF=        0.9741         0.9730      +0.11%         +0.65%      +0.9748     +0.9713
 Sterling/Dollar  GBP=        1.2432         1.2367      +0.53%         -6.24%      +1.2454     +1.2361
 Dollar/Canadian  CAD=        1.4058         1.4102      -0.31%         +8.26%      +1.4116     +1.4040
 Australian/Doll  AUD=        0.6465         0.6385      +1.25%         -7.92%      +0.6471     +0.6381
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0570         1.0528      +0.40%         -2.60%      +1.0573     +1.0532
 Euro/Sterling    EURGBP=     0.8728         0.8749      -0.24%         +3.24%      +0.8754     +0.8710
 NZ               NZD=        0.6061         0.6018      +0.71%         -10.02%     +0.6075     +0.6003
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        10.5626        10.5980     -0.33%         +20.32%     +10.6550    +10.5344
 Euro/Norway      EURNOK=     11.4633        11.4898     -0.23%         +16.52%     +11.5446    +11.4378
 Dollar/Sweden    SEK=        10.0282        10.0161     +0.12%         +7.28%      +10.0725    +9.9843
 Euro/Sweden      EURSEK=     10.8816        10.8685     +0.12%         +3.94%      +10.8955    +10.8362
 
    

 (Additional reporting by Olga Cotaga in London
Editing by Paul Simao)
  
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