July 10, 2020 / 3:18 PM / a month ago

FOREX-Yen rises on renewed surge in virus cases; dollar index falls

    * U.S. producer prices fall in June, dollar weaker
    * U.S. COVID cases post one-day record on Thursday
    * Yuan dips but stays near 4-month high
    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E

 (Adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, July 10 (Reuters) - The safe-haven Japanese yen climbed to a two-week peak against the
dollar on Friday, lifted by concerns about a surge in coronavirus infections in the United States and
around the world. 
    The yen was on track to post its largest daily percentage gain against the dollar in about a month.
    The greenback fell against a basket of major currencies, pressured by weaker-than-expected U.S.
producer prices in June as well as positive news about the potential coronavirus vaccine remdesivir that
hurt the dollar's status as a safe haven. 
    More than 60,500 new COVID-19 infections were reported across the United States on Thursday, according
to a Reuters tally, the largest one-day increase in any country since the pandemic emerged in China last
year.
    There were also alarming new spikes in infections in some Asia Pacific cities that appeared to have
contained the disease, such as Tokyo, Hong Kong and Melbourne.
    "Growth worries stalked markets, buoying safe bets like the yen and gold," said Joe Manimbo, senior
market analyst, at Western Union Business Solutions in Washington.
    He cited the rise in COVID cases globally and recent U.S. economic data, which has "shown signs of
improvement," but "the pace has started to tail off."
    U.S. producer prices unexpectedly fell 0.2% in June, after rebounding 0.4% in May, as the economy
battles depressed demand amid the COVID-19 pandemic.
    Also weighing on the dollar was news that Gilead Sciences Inc said additional data from a
late-stage study showed its antiviral remdesivir reduced the risk of death and significantly improved the
conditions of severely ill COVID-19 patients.
    In late morning trading, the dollar fell 0.5% against the yen to 106.66 yen.
    "The Japanese yen has been trading within a very tight trading range throughout the crisis. We're
definitely back towards the bottom of that range," said Lee Hardman, currency analyst at MUFG.
    The dollar index also fell 0.3% to 96.451
    The euro rose 0.3% against the dollar to $1.1318, while the British pound was up 0.4% at
$1.2655.
    The Chinese yuan in the offshore market was down about 0.1% at 7.0039 per U.S. dollar,
having touched a near-four-month high of 6.9808 on Thursday.
    The Chinese currency has gained almost 1% this week, supported by hopes of capital inflows as share
prices rebounded after Beijing indicated it wants a healthy bull market.
    
    ========================================================
    Currency bid prices at 11:02AM (1502 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1316        $1.1281     +0.31%         +0.95%      +1.1324     +1.1256
 Dollar/Yen       JPY=        106.7200       107.1900    -0.44%         -1.97%      +107.2600   +106.6500
 Euro/Yen         EURJPY=     120.81         120.95      -0.12%         -0.94%      +121.0600   +120.2800
 Dollar/Swiss     CHF=        0.9391         0.9402      -0.12%         -2.97%      +0.9431     +0.9386
 Sterling/Dollar  GBP=        1.2659         1.2604      +0.44%         -4.53%      +1.2663     +1.2568
 Dollar/Canadian  CAD=        1.3587         1.3584      +0.02%         +4.61%      +1.3631     +1.3575
 Australian/Doll  AUD=        0.6956         0.6963      -0.10%         -0.94%      +0.6969     +0.6925
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0630         1.0609      +0.20%         -2.05%      +1.0638     +1.0608
 Euro/Sterling    EURGBP=     0.8939         0.8949      -0.11%         +5.75%      +0.8970     +0.8939
 NZ               NZD=        0.6577         0.6568      +0.14%         -2.35%      +0.6588     +0.6547
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.4192         9.4645      -0.48%         +7.30%      +9.5467     +9.4115
 Euro/Norway      EURNOK=     10.6625        10.6843     -0.20%         +8.40%      +10.7545    +10.6565
 Dollar/Sweden    SEK=        9.1713         9.2331      -0.39%         -1.88%      +9.2814     +9.1699
 Euro/Sweden      EURSEK=     10.3797        10.4200     -0.39%         -0.85%      +10.4527    +10.3778
 
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Iain Withers in London; Editing by David
Gregorio)
  
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