February 4, 2020 / 4:03 PM / 12 days ago

FOREX-Safe-haven yen, Swiss franc slide for 2nd day as risk appetite grows

    * Risk appetite picks up; markets monitor coronavirus
    * Yen, Swiss franc drops
    * Offshore yuan, Australian dollar rise
    * Markets brace for more Chinese measures to ease virus impact
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Recasts, adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Feb 4 (Reuters) - The safe-haven yen and Swiss franc fell for a second straight session
against the U.S. dollar on Tuesday, with risk appetite growing as investors were encouraged that the
Chinese government was taking measures to contain the coronavirus and limit its economic fallout.
    Currencies such as the Australian dollar and offshore Chinese yuan climbed. 
    The People's Bank of China (PBOC) has pumped in hundreds of billions of dollars into the financial
system this week. In the past two days, the PBOC has injected 1.7 trillion yuan ($242.74 billion) through
open market operations.
    "It feels like the containment measures and getting more information about the virus have helped the
market and so investors are not so worried about uncertainty," said Thomas Anderson, managing director at
moneycorp North America.
    "I think people overreacted last week and now they're unwinding that overreaction," he added.
    "China pretty much jumped into everything they needed to do to stabilize the market and it worked."
    Still, the death toll from the virus epidemic climbed to 427, infecting 20,438 in China. There have
been nearly 200 cases elsewhere across 24 countries. Also, the outbreak is expected to have a
devastating impact on first-quarter growth, policy sources said.
    In late morning trading, the dollar rose 0.5% against the yen to 109.26 yen, and gained 0.3%
versus the Swiss franc to 0.9690 franc.
    Gains against the yen and franc helped push the dollar index higher to 97.922, up 0.1% on the
day.
    In U.S. politics, Democratic Party officials blamed "inconsistencies" for an indefinite delay in
Iowa's caucus results. A victory by left-leaning Bernie Sanders or Elizabeth Warren could
hurt shares and boost safe-haven currencies.
    The euro, meanwhile, slipped 0.1% against the dollar to $1.1040.
    The Australian dollar rose 0.5% to US$0.67285, pulling away from a 10 1/2-year low of $0.6670
touched last October, after the Reserve Bank of Australia left its main cash rate unchanged at 0.75%.
    The offshore yuan rose against the dollar, which fell 0.3% to 6.9935.
    Elsewhere, sterling rebounded from a near-six week low against the U.S. dollar  to trade 0.3% higher
at $1.3028. Sterling has been under pressure from worries over a hard Brexit amid a tough stance
here
 taken by Prime Minister Boris Johnson on European Union trade talks.
    
    ========================================================
    Currency bid prices at 10:39 AM (1539 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1035        $1.1058     -0.21%         -1.56%      +1.1064     +1.1037
 Dollar/Yen       JPY=        109.3200       108.6700    +0.60%         +0.42%      +109.3500   +108.5600
 Euro/Yen         EURJPY=     120.66         120.19      +0.39%         -1.07%      +120.7100   +120.0700
 Dollar/Swiss     CHF=        0.9695         0.9657      +0.39%         +0.19%      +0.9699     +0.9657
 Sterling/Dollar  GBP=        1.3033         1.2993      +0.31%         -1.70%      +1.3046     +1.2942
 Dollar/Canadian  CAD=        1.3277         1.3284      -0.05%         +2.24%      +1.3301     +1.3266
 Australian/Doll  AUD=        0.6725         0.6691      +0.51%         -4.22%      +0.6734     +0.6680
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0701         1.0683      +0.17%         -1.39%      +1.0717     +1.0682
 Euro/Sterling    EURGBP=     0.8466         0.8509      -0.51%         +0.14%      +0.8537     +0.8468
 NZ               NZD=        0.6466         0.6460      +0.09%         -4.01%      +0.6476     +0.6450
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.2305         9.2793      -0.53%         +5.15%      +9.2871     +9.2177
 Euro/Norway      EURNOK=     10.1883        10.2660     -0.76%         +3.56%      +10.2738    +10.1790
 Dollar/Sweden    SEK=        9.6054         9.6479      -0.67%         +2.76%      +9.6550     +9.5944
 Euro/Sweden      EURSEK=     10.6011        10.6722     -0.67%         +1.26%      +10.6754    +10.5960
 
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Yoruk Bahceli in London; Editing by David
Gregorio)
  
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