June 22, 2020 / 2:10 PM / 11 days ago

FOREX-Dollar dips, Aussie outperforms as investors weigh coronavirus impact

    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Adds details, updates prices; changes byline, dateline;
previous LONDON)
    By Karen Brettell
    NEW YORK, June 22 (Reuters) - The U.S. dollar dropped and
higher risk currencies including the Australian dollar jumped on
Monday as investors weighed improving economic data against the
prospect of new business shutdowns as the coronavirus spread
further.
    The World Health Organization (WHO) reported a record
increase in global novel coronavirus cases on Sunday. The
biggest rise in cases was in North America and South
America.
    On Friday, Apple Inc said it was temporarily
shutting some stores again in Florida, Arizona, South Carolina,
and North Carolina in the United States due to fresh outbreaks.

    “Concerns of a second wave of infections weighed on markets
during the Asian sessions but seem to have faded,” said Win
Thin, global head of currency strategy at Brown Brothers
Harriman.
    Strong economic data has raised hopes the economy will
bounce back quickly from business shutdowns. 
    Francesco Pesole, FX strategist at ING, said financial
markets were watching the extent to which new cases led to
tighter lockdown measures.
    "If markets start to make the connection that more cases
will automatically imply new lockdowns then obviously it will
get much more sensitive to any new peak in terms of second
wave," Pesole said.
    The dollar dipped 0.48% against a basket of currencies
 to 97.214.
    The euro gained 0.55% versus the dollar to 1.1237,
rising off recent two-and-a-half-week lows.
    On Friday, EU leaders agreed urgent action was needed to
haul their economies from the deepest recession since World War
Two, but made no progress on a massive stimulus plan that has
divided them for weeks.
    Riskier currencies outperformed with the Australian dollar
 up 0.86% at $0.6891 against the greenback.
    Reserve Bank of Australia (RBA) Governor Philip Lowe said
the currency's recent rise was not a problem and the impact of
the pandemic would not be as bad as feared.
    A broad gauge of dollar positioning on Friday
showed speculators increased their short bets against the
greenback to the most since May 2018, at $16.27 billion.

    
    ========================================================
    Currency bid prices at 9:51AM (1351 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1237        $1.1175     +0.55%         +0.24%      +1.1243     +1.1169
 Dollar/Yen       JPY=        106.8000       106.8700    -0.07%         -1.89%      +107.0000   +106.7800
 Euro/Yen         EURJPY=     120.03         119.43      +0.50%         -1.57%      +120.1200   +119.3200
 Dollar/Swiss     CHF=        0.9487         0.9523      -0.38%         -1.97%      +0.9528     +0.9487
 Sterling/Dollar  GBP=        1.2414         1.2356      +0.47%         -6.37%      +1.2434     +1.2336
 Dollar/Canadian  CAD=        1.3553         1.3603      -0.37%         +4.39%      +1.3630     +1.3546
 Australian/Doll  AUD=        0.6891         0.6832      +0.86%         -1.85%      +0.6894     +0.6806
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0663         1.0640      +0.22%         -1.74%      +1.0668     +1.0640
 Euro/Sterling    EURGBP=     0.9049         0.9049      +0.00%         +7.05%      +0.9065     +0.9021
 NZ               NZD=        0.6480         0.6405      +1.17%         -3.82%      +0.6483     +0.6372
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.6095         9.6405      -0.32%         +9.49%      +9.7137     +9.5754
 Euro/Norway      EURNOK=     10.8020        10.7733     +0.27%         +9.80%      +10.8665    +10.7339
 Dollar/Sweden    SEK=        9.3816         9.4673      -0.50%         +0.37%      +9.4718     +9.3776
 Euro/Sweden      EURSEK=     10.5440        10.5970     -0.50%         +0.71%      +10.5975    +10.5388
 
    
 (Additional eporting by Elizabeth Howcroft in London; Editing
by David Gregorio)
  
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