May 7, 2020 / 3:03 PM / 21 days ago

FOREX-Dollar gains as U.S. jobless claims back safe-haven bid

    * U.S. jobless claims at more than 3 mln in latest week
    * Euro still under pressure from German court ruling
    * Turkish lira slumps to record low vs dollar
    * BoE leaves rates steady, holds off on stimulus
    * 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, May 7 (Reuters) - The dollar climbed to two-week highs on Thursday, garnering more
safe-haven bids, after yet another report showed millions more Americans took unemployment aid from the
government in the latest week as the coronavirus pandemic continued to ravage the U.S. economy.
    The greenback also hit a two-week peak against the euro and traded near a seven-week high versus the
yen. Against the safe-haven Swiss franc, the dollar advanced for a fourth consecutive day.
    "All things being equal, like in the beginning of this whole thing when there is uncertainty, people
flock to certainty, or less uncertainty and the dollar is the beneficiary," said Thomas Anderson, managing
director, at moneycorp in Boston. 
    "We're below 108 yen in dollar/yen. That's the inflection point at least until June," he added.
    The U.S. currency held its gains after data showed U.S. weekly jobless claims totaled a seasonally
adjusted 3.169 million for the week ended May 2, down from a revised 3.846 million in the prior week.
Economists polled by Reuters had forecast 3.0 million claims in the last week.
    In morning trading, the dollar index rose 0.1% to 100.30, just off a two-week high touched
earlier in the session of 100.33.
    The dollar also gained 0.5% against the yen to 106.60 yen, and climbed 0.3% versus the Swiss
franc to 0.9776 franc.
    The euro, meanwhile, fell 0.3% against the dollar to $1.0775, earlier dropping to a two-week
low of $1.0773, its lowest in two weeks. It has shed more than 1.5% this week and is set for its biggest
weekly drop in just over a month. 
    The single European currency weakened on nagging concern over the direction of the European Central
Bank's stimulus scheme following a German court ruling earlier this week.    
    "The court ruling has opened up a lot more uncertainty over the continuation of the ECB's asset
purchase programme, which has been a key pillar of support for the economy and financial markets," said
Lee Hardman, a currency strategist at MUFG.
     Sterling was down 0.5% at $1.2284, after rallying earlier following the Bank of England's
decision to leave interest rates unchanged and hold off on more stimulus.
     In emerging markets, Turkey's lira fell to a record low of 7.25 per U.S. dollar, after traders
interpreted comments from a Federal Reserve policymaker as ruling out a Fed swap line to cushion Ankara's
depleted reserves.
    Stronger-than-expected Chinese export numbers lifted hopes in global markets that China can rebound
quickly and help global growth recover from a coronavirus-induced shock.
    Chinese exports rose 3.5% despite expectations of 15.7% drop, helping to lift the Chinese yuan
 in the offshore market and the Australian dollar. The yuan was last up 0.3% at 7.1095 per U.S.
dollar.
    The Aussie dollar was last up 0.7% at US$0.6449.
    
    ========================================================
    Currency bid prices at 10:22AM (1422 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.0773        $1.0794     -0.19%         -3.90%      +1.0815     +1.0767
 Dollar/Yen       JPY=        106.6200       106.1400    +0.45%         -2.06%      +106.6500   +106.0000
 Euro/Yen         EURJPY=     114.86         114.53      +0.29%         -5.81%      +115.0600   +114.4700
 Dollar/Swiss     CHF=        0.9775         0.9748      +0.28%         +1.00%      +0.9783     +0.9738
 Sterling/Dollar  GBP=        1.2272         1.2341      -0.56%         -7.44%      +1.2416     +1.2270
 Dollar/Canadian  CAD=        1.4050         1.4143      -0.66%         +8.19%      +1.4173     +1.4048
 Australian/Doll  AUD=        0.6443         0.6400      +0.67%         -8.23%      +0.6473     +0.6379
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0531         1.0524      +0.07%         -2.96%      +1.0541     +1.0525
 Euro/Sterling    EURGBP=     0.8776         0.8740      +0.41%         +3.81%      +0.8780     +0.8710
 NZ               NZD=        0.6033         0.6008      +0.42%         -10.44%     +0.6062     +0.5996
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        10.2509        10.2876     -0.36%         +16.77%     +10.3390    +10.2082
 Euro/Norway      EURNOK=     11.0447        11.0980     -0.48%         +12.27%     +11.1561    +11.0170
 Dollar/Sweden    SEK=        9.8540         9.8433      -0.16%         +5.42%      +9.8558     +9.8040
 Euro/Sweden      EURSEK=     10.6155        10.6330     -0.16%         +1.40%      +10.6415    +10.6036
 
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting Dhara Ranasinghe in London; Editing by
Bernadette Baum)
  
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