March 10, 2020 / 2:52 PM / 18 days ago

FOREX-U.S. dollar recovers vs yen, Swiss franc, buoyed by stimulus hopes

    * Dollar recovers, adds more than 2% vs yen, 0.7% vs euro
    * Commodity-linked currencies rebound but sentiment fragile
    * Tracking the coronavirus: tmsnrt.rs/3aIRuz7
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, March 10 (Reuters) - The dollar rallied on Tuesday after huge losses against the safe-haven
Japanese yen and Swiss franc, amid investor hopes that global monetary policymakers will make further
stimulus efforts to mitigate the economic impact of the coronavirus outbreak.
    The greenback's recovery coincided with a rebound in the U.S. stock market and bounce in Treasury
yields across the board, following U.S. President Donald Trump's announcement that he would hold a news
conference on Tuesday about economic measures in response to the virus.
    Indications of further stimulus efforts by some governments helped reverse some of Monday's gyrations,
but at 104 yen per dollar the Japanese currency was not back above the 105 seen before this week.

    "This crisis caused by the coronavirus is pushing central banks and governments to spend money and
that's a good thing for the market," said Juan Perez, senior currency trader at Tempus Inc. in Washington.
    "That's what the world wanted, not so much a cut in interest rates or quantitative easing. That why I
feel the dollar will come back and recover," he added.
    Analysts said though it was too early to predict a floor for the dollar, which plunged on Monday after
an energy price war between Saudi Arabia and Russia triggered the biggest daily rout in oil prices since
the 1991 Gulf War and Treasury yields dropped further.
    Against a basket of currencies, the dollar rose 0.5% to 95.865. It rose 2% against the yen to
104.46, considerably higher than Monday's 101.18 low.
    The yen also fell against the euro and the Australian dollar, after Bank of
Japan officials indicated they were ready to ramp up stimulus if necessary, before a policy meeting next
week. 
    The euro dropped 0.8% versus the dollar to $1.1354, down from $1.1495 on Monday, its
strongest since early January. 
    The dollar rose 0.9% against the Swiss franc to 0.9332 franc on Tuesday, recovering after
three days of heavy selling pushed it to its lowest in almost five years. Data suggest the Swiss National
Bank is now intervening to weaken its currency.
    Sterling, meanwhile, fell 0.7% versus the U.S. currency to $1.3020. 
    Volatility has doubled in FX markets from the levels of late February, reaching its highest since
early 2017, according to one index.
    Analysts said FX volatility, which has not jumped to the same extent as in equity markets, could rise
further.   
    Commodity-linked currencies that tumbled on Monday following the crash in oil prices recovered
slightly. The Norwegian crown added 1.3% versus the euro to 10.80, away from record lows but
still off the 10.4 levels seen last week. 
    The Canadian dollar slipped 0.2% against the greenback, which edged up 2% to  C$1.3694. 
    
    ========================================================
    Currency bid prices at 10:29AM (1429 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1358        $1.1447     -0.78%         +1.32%      +1.1458     +1.1333
 Dollar/Yen       JPY=        104.3700       102.3400    +1.98%         -4.12%      +105.2400   +102.0200
 Euro/Yen         EURJPY=     118.56         117.02      +1.32%         -2.78%      +119.3400   +116.8300
 Dollar/Swiss     CHF=        0.9327         0.9250      +0.83%         -3.63%      +0.9373     +0.9247
 Sterling/Dollar  GBP=        1.3006         1.3131      -0.95%         -1.91%      +1.3132     +1.3006
 Dollar/Canadian  CAD=        1.3704         1.3701      +0.02%         +5.53%      +1.3706     +1.3608
 Australian/Doll  AUD=        0.6538         0.6586      -0.73%         -6.88%      +0.6613     +0.6539
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0595         1.0578      +0.16%         -2.37%      +1.0646     +1.0576
 Euro/Sterling    EURGBP=     0.8731         0.8720      +0.13%         +3.28%      +0.8746     +0.8682
 NZ               NZD=        0.6308         0.6334      -0.41%         -6.35%      +0.6359     +0.6288
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.5349         9.5737      -0.41%         +8.62%      +9.5911     +9.4602
 Euro/Norway      EURNOK=     10.8317        10.9549     -1.12%         +10.10%     +10.9880    +10.7280
 Dollar/Sweden    SEK=        9.4803         9.4385      -0.39%         +1.42%      +9.4987     +9.4175
 Euro/Sweden      EURSEK=     10.7676        10.8095     -0.39%         +2.85%      +10.8131    +10.7190
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Tommy Wilkes in London)
  
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