July 27, 2020 / 2:19 PM / 9 days ago

FOREX-Euro jumps, dollar hurt by coronavirus spread

 (Adds analyst's quote, edits)
    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E 

    By Karen Brettell
    NEW YORK, July 27 (Reuters) - The dollar tumbled to an
almost two-year low against the euro on Monday on concerns about
a growing number of coronavirus cases in the United States, and
before the Federal Reserve this week is expected to confirm its
commitment to rock bottom rates.
    “It seems like we’re seeing the dollar lose its crown,” said
Edward Moya, senior market analyst at OANDA in New York. “There
are high expectations you’re going to see the Fed continue to
signal that they’re prepared to do more at a longer run, and the
U.S. economic recovery is not going to be anywhere near as
smooth as what is unfolding in Europe.”
    Florida on Sunday became the second state after California
to overtake New York, the worst-hit state at the start of the
U.S. novel coronavirus outbreak, according to a Reuters tally.

    U.S. Treasury Secretary Steve Mnuchin said on Sunday
Republican coronavirus relief legislation will be made public on
Monday and that he believes the party can move quickly with
Democrats to hammer out their differences.
    The Fed is expected to reiterate that it will keep rates
near zero for years to come when it concludes its two-day
meeting on Wednesday.
    The euro was last up 0.87% at $1.1755, after earlier
reaching $1.1763, the highest since September 2018.
    The single currency may extend gains to $1.20 if the region
is able to contain any resurgences of the coronavirus, Moya
said. 
    “I think you’re going to see a steady amount of investment
and market positioning going back to Europe, and that will
provide some room for much more weakness here with the U.S.
dollar,” he said.
    The dollar index fell 0.76% to 93.64. It earlier
dipped to 93.60, the lowest since June 2018. 
    The safe haven Japanese yen also gained on concerns about
deteriorating U.S.-China relations. Tensions rose after
Washington last week ordered China's consulate in Houston to
close, prompting Beijing to shutter the U.S. consulate in
Chengdu.
    The dollar fell 0.82% to 105.25 yen, the weakest
since March 16. 
    
    ========================================================
    Currency bid prices at 9:49AM (1349 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1755        $1.1654     +0.87%         +4.86%      +1.1763     +1.1639
 Dollar/Yen       JPY=        105.2500       106.1200    -0.82%         -3.32%      +106.1800   +105.2500
 Euro/Yen         EURJPY=     123.76         123.70      +0.05%         +1.48%      +123.8700   +123.2200
 Dollar/Swiss     CHF=        0.9206         0.9206      +0.00%         -4.88%      +0.9229     +0.9168
 Sterling/Dollar  GBP=        1.2866         1.2789      +0.60%         -2.96%      +1.2877     +1.2783
 Dollar/Canadian  CAD=        1.3379         1.3413      -0.25%         +3.03%      +1.3430     +1.3370
 Australian/Doll  AUD=        0.7143         0.7103      +0.56%         +1.74%      +0.7146     +0.7088
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0824         1.0726      +0.91%         -0.26%      +1.0837     +1.0729
 Euro/Sterling    EURGBP=     0.9136         0.9110      +0.29%         +8.06%      +0.9148     +0.9099
 NZ               NZD=        0.6686         0.6644      +0.63%         -0.74%      +0.6688     +0.6628
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.0852         9.1588      -0.80%         +3.49%      +9.1865     +9.0624
 Euro/Norway      EURNOK=     10.6820        10.6760     +0.06%         +8.58%      +10.6985    +10.6325
 Dollar/Sweden    SEK=        8.7333         8.8181      -0.35%         -6.57%      +8.8499     +8.7269
 Euro/Sweden      EURSEK=     10.2670        10.3033     -0.35%         -1.93%      +10.3033    +10.2578
 

 (Reporting By Karen Brettell)
  
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