June 30, 2020 / 2:55 PM / 4 days ago

FOREX-U.S. dollar posts modest gains on renewed virus fears

    * Dollar posts losses at quarter-end, month-end
    * Euro zone inflation remains weak 
    * UK posts worst quarter since 1979 
    * Weak sentiment amid pandemic worries
    * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E

 (Recasts, adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, June 30 (Reuters) - The dollar firmed modestly on Tuesday, lifted by renewed concerns about
the spread of the novel coronavirus, as countries around the world and some U.S. states imposed new
lockdowns, stalling their paths to economic recovery.
    Some analysts said the dollar may have also benefited from the month-end and quarterly-end rebalancing
flows.
    That said, the dollar was on track to end both the second quarter and the month of June on a negative
note. Investors sold the dollar and bought currencies that benefited from higher risk appetite as
countries during the period looked to reopening their economies and anticipated developments on a new
vaccine for the virus.
    "Risk is off a little bit, so you're seeing the dollar gaining a little bit. But it's not a crazy
risk-off day," said John Doyle, vice president of dealing and trading, at Tempus, Inc. in Washington.
    "There are new concerns. The warnings from the WHO, smaller headlines that added to a bigger story
such as new lockdowns in places that you think may be past it," he added.
    The United States saw a 46% increase in new cases of COVID-19 in the week ended June 28 compared to
the previous seven days, with 21 states reporting positivity test rates above the level that the World
Health Organization has flagged as concerning.
    WHO President Tedros Adhanom Ghebreyesus said the coronavirus pandemic is far form being over even
though many countries have made some progress.
    In late morning trading, the dollar index was up 0.1% at 97.530, holding onto overnight gains after
upbeat U.S. home sales data boosted Wall Street.
    On the quarter and month, the dollar was on pace for losses of 1.4% and 0.8% respectively.
    The dollar also gained versus the yen, up 0.1% at 107.725
    The euro, meanwhile, fell 0.3% against the dollar to $1.1212, pressured by data showing underlying
price pressures dropped again in the euro zone. That underscored fears that consumer price growth will
remain anaemic for years. 
     Over the quarter, the European currency staged a 1.6% comeback after falling by a similar margin
during the first three months of the year marked by the coronavirus financial market crash. For the month
of June, the euro was up 0.9%.
    Traders said there remains a barrier of $1.1200 for the euro on the downside
    Sterling reversed losses against the dollar to trade up 0.2% at $1.2328. Earlier in the
session, the pound lost ground after Britain's Office for National Statistics said the economy shrank by
2.2% between January and March, its worst performance since 1979, as households slashed their spending.

    The safe-haven Swiss franc gained a little bit against the dollar. The greenback was last at
0.9499 franc, down 0.2%.
    
    ========================================================
    Currency bid prices at 10:34 AM (1434 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1219        $1.1240     -0.19%         +0.08%      +1.1252     +1.1192
 Dollar/Yen       JPY=        107.6700       107.5600    +0.10%         -1.09%      +107.7900   +107.5300
 Euro/Yen         EURJPY=     120.81         120.92      -0.09%         -0.93%      +121.1700   +120.5900
 Dollar/Swiss     CHF=        0.9487         0.9511      -0.25%         -1.97%      +0.9532     +0.9486
 Sterling/Dollar  GBP=        1.2343         1.2296      +0.38%         -6.91%      +1.2347     +1.2259
 Dollar/Canadian  CAD=        1.3647         1.3657      -0.07%         +5.09%      +1.3699     +1.3650
 Australian/Doll  AUD=        0.6873         0.6864      +0.13%         -2.11%      +0.6885     +0.6834
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0646         1.0692      -0.43%         -1.90%      +1.0699     +1.0643
 Euro/Sterling    EURGBP=     0.9087         0.9138      -0.56%         +7.49%      +0.9144     +0.9088
 NZ               NZD=        0.6420         0.6419      +0.02%         -4.69%      +0.6430     +0.6386
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.6923         9.6711      +0.22%         +10.41%     +9.7682     +9.6666
 Euro/Norway      EURNOK=     10.8760        10.8720     +0.04%         +10.55%     +10.9500    +10.8650
 Dollar/Sweden    SEK=        9.3273         9.3280      -0.21%         -0.21%      +9.3872     +9.3201
 Euro/Sweden      EURSEK=     10.4655        10.4872     -0.21%         -0.04%      +10.5240    +10.4624
 
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Julien Ponthus in London; Editing by
Andrea Ricci)
  
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