June 25, 2020 / 2:26 PM / 9 days ago

FOREX-Dollar gains as virus concerns dents risk appetite

    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E

 (Adds details, updates prices; changes byline, dateline;
previous LONDON)
    By Karen Brettell
    NEW YORK, June 25 (Reuters) - The U.S. dollar rose on
Thursday on safety buying as fears grew over a rapid rise in
coronavirus infections in some U.S. states  and as trade
tensions between the United States and the European Union
increased.
    The governors of New York, New Jersey and Connecticut on
Wednesday ordered travelers from eight other U.S. states to be
quarantined for two weeks on arrival, as COVID-19 infections
surged in regions spared the brunt of the initial outbreak.

    “It’s really fast accelerating in a lot of U.S. states,
which is going to continue to be a problem for markets,” said
Erik Nelson, a macro strategist at Wells Fargo in New York.
    Data on Thursday showed weak demand is forcing U.S.
employers to lay off workers, keeping new applications for
unemployment benefits extraordinarily high, even as businesses
have reopened.
    New orders for U.S.-made capital goods rebounded more than
expected in May, but recouped only a portion of the prior two
months' declines.
    Forex markets have been closely following moves in equities
as risk sentiment changes. Stocks opened lower on Thursday
following their worst day in two weeks.
    The U.S. dollar index was last up 0.17% on the day at
97.40.
    A dispute between the United States and the European Union,
in which Washington is flagging possible changes in tariffs on
EU goods, also hurt risk sentiment. 
    The euro was weighed down as riskier assets in the region,
including Italian bonds, weakened, and as the European Central
Bank fought back against a German court challenge to its
money-printing plans.
    "There’s a little bit of unease going on in the European
financial markets, which is probably weighing on the euro," said
Nelson.
    The ECB also said it will offer euro loans against
collateral to central banks outside the euro area to backstop
funding markets amid the coronavirus pandemic.
    The euro was last down 0.31% at $1.1215.
    The dollar gained 0.17% against the Japanese yen to
107.2 yen.
    The Canadian dollar was little changed on the day after
weakening on Wednesday, when Fitch Ratings cut the country from
AAA, warning of a ballooning government deficit caused by public
spending related to the pandemic.
    The loonie last traded at $1.3638.
    
    ========================================================
    Currency bid prices at 10:03AM (1403 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1215        $1.1250     -0.31%         +0.04%      +1.1260     +1.1191
 Dollar/Yen       JPY=        107.2000       107.0200    +0.17%         -1.52%      +107.4500   +107.0000
 Euro/Yen         EURJPY=     120.23         120.42      -0.16%         -1.40%      +120.6200   +120.1500
 Dollar/Swiss     CHF=        0.9487         0.9477      +0.11%         -1.97%      +0.9507     +0.9475
 Sterling/Dollar  GBP=        1.2415         1.2418      -0.02%         -6.37%      +1.2464     +1.2390
 Dollar/Canadian  CAD=        1.3638         1.3637      +0.01%         +5.02%      +1.3666     +1.3607
 Australian/Doll  AUD=        0.6874         0.6872      +0.03%         -2.09%      +0.6889     +0.6848
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0642         1.0664      -0.21%         -1.94%      +1.0676     +1.0636
 Euro/Sterling    EURGBP=     0.9033         0.9059      -0.29%         +6.85%      +0.9066     +0.9002
 NZ               NZD=        0.6428         0.6408      +0.31%         -4.57%      +0.6442     +0.6400
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.6836         9.6627      +0.22%         +10.31%     +9.7374     +9.6445
 Euro/Norway      EURNOK=     10.8640        10.8830     -0.17%         +10.43%     +10.9360    +10.8329
 Dollar/Sweden    SEK=        9.3298         9.3473      -0.68%         -0.19%      +9.3826     +9.3235
 Euro/Sweden      EURSEK=     10.4648        10.5366     -0.68%         -0.04%      +10.5525    +10.4626
 
    

 (Additional reporting by Julien Ponthus in London; Editing by
Dan Grebler)
  
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