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( Includes yuan in second paragraph)
* Graphic: World FX rates in 2020 tmsnrt.rs/ 2RBWI5E
* No end in sight to U.S. virus surge
* Dollar supported on safe-haven circulations
* Euro eyes EU meeting on economic stimulus
By Stanley White
TOKYO, July 17 (Reuters) – The dollar held onto gains versus many currencies as worries that a resurgence in the coronavirus is beginning to curb financial activity drew safe-haven flows into the U.S. currency.
The yuan fell by the most in 3 weeks, reversed by a consistent increase in diplomatic friction in between the United States and China.
The euro was well supported by hopes that European officials will agree on financial stimulus procedures at a conference starting later on Friday.
Some financiers state they are starting to see unpleasant check in current information that an unrelenting rise in coronavirus infections is threatening the U.S. economy.
Others indicate a broadening row in between the United States and China as reason to avoid risky trades, which ought to keep the dollar in demand for the time being.
” The dollar appears like a great safe haven now because of fret about a return to coronavirus lockdowns,” stated Minori Uchida, head of global marketing research at MUFG Bank.
” However I stress that the dollar will begin to lose this status if long-term Treasury yields continue to fall.”
The dollar stood at 107.24 yen in Asia on Friday, following a 0.3%gain in the previous session.
The euro held steady at $1.1381 and was marginally higher versus the British pound at 90.60 pence.
Sterling was bit changed at $1.2560 on Friday.
The dollar was priced estimate at 0.9460 Swiss franc, near the highest because July 3.
For the week, the dollar was on course for gains versus the yen, sterling, and the Swiss franc due to safe-haven inflows.
Another dive in coronavirus infections has actually forced California and other U.S. states to at least partially shut down again, raising worries the economy and labour market will continue to battle.
In addition, U.S. President Donald Trump’s administration is thinking about banning travel to the United States by all members of the Chinese Communist Party, according to an individual familiar with the matter, in a move that would surely put further strain on relations between Washington and Beijing.
Today the United States has actually ratcheted up the pressure on China in a wide-ranging disagreement over civil liberties, access to technology, and territorial claims that some experts liken to a brand-new cold war.
The onshore yuan fell by the most considering that June 24 to 7.0041, reflecting the growing issue about the Sino-U.S. relationship.
The euro will take centre phase later on Friday as European Union leaders will meet in Brussels as they seek to conquer their differences over a proposed stimulus bundle.
The stakes are high because the coronavirus pandemic has caused significant damage and some short-term procedures supporting the labour market will soon end. (Reporting by Stanley White; Modifying by Gerry Doyle and Richard Pullin)