June 2, 2020 / 2:17 PM / a month ago

RPT-FOREX-Dollar drops, Aussie outperforms as risk appetite improves

 (Repeats to additional subscribers with no changes to text)
    By Karen Brettell
    NEW YORK, June 2 (Reuters) - Safe havens the U.S. dollar and
Japanese yen fell on Tuesday, and higher-risk currencies,
including the Australian dollar, jumped, as risk appetite grew
on optimism that the worst of the economic downturn from the
spread of the coronavirus is in the past.
    U.S. stocks opened higher as cheer over business reopenings
overcame concerns about U.S.-China tensions and mass protests
across the United States over the death of an African-American
man in police custody.
    “The good times continue to roll in risk markets,” Mazen
Issa, senior FX strategist at TD Securities , said in a report.
“As intense as the rally has been, this is likely set to
continue as the breadth of the equity rally has now spread
outside the U.S.”
    The dollar index against a basket of major currencies
fell 0.28% to 97.61 after going as low as 97.43, the lowest
since March 13.
    The greenback gained 0.75% against the Japanese yen
to 108.29 yen, the highest since April 13.
    The Australian dollar jumped 0.84% to $0.6854, after
reaching $0.6869, the highest since January 23. 
    Australia's central bank held rates at all-time lows on
Tuesday and sounded less gloomy as the economy gradually reopens
during what is likely to be the worst quarter since the Great
Depression of the 1930s.
    The euro was supported by expectations that the European
Central Bank will deliver more stimulus when it meets on
Thursday. 
    A 1.85 trillion euro ($2.04 trillion) fiscal package
proposed by the European Commission to lift the region's economy
eases the pressure to act speedily. Many economists nevertheless
expect the 750 billion Pandemic Emergency Purchase Programme
(PEPP) to increase by 500 billion euros. ABN Amro thinks it will
double in size.
    The single currency rose 0.35% to $1.1173, after
earlier reaching $1.1187, the highest since March 17. 
    Sterling climbed above $1.25 to its highest in a
month against the dollar on Tuesday, as signs that Britain might
be willing to compromise on sticking points in a fresh round of
Brexit negotiations with the European Union provided support.

    
    ========================================================
    Currency bid prices at 9:40AM (1340 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1173        $1.1134     +0.35%         -0.33%      +1.1187     +1.1116
 Dollar/Yen       JPY=        108.3900       107.5800    +0.75%         -0.43%      +108.4700   +107.5200
 Euro/Yen         EURJPY=     121.12         119.79      +1.11%         -0.68%      +121.2000   +119.6300
 Dollar/Swiss     CHF=        0.9618         0.9607      +0.11%         -0.62%      +0.9637     +0.9574
 Sterling/Dollar  GBP=        1.2562         1.2492      +0.56%         -5.26%      +1.2575     +1.2479
 Dollar/Canadian  CAD=        1.3533         1.3571      -0.28%         +4.21%      +1.3585     +1.3493
 Australian/Doll  AUD=        0.6854         0.6797      +0.84%         -2.38%      +0.6869     +0.6776
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0747         1.0698      +0.46%         -0.97%      +1.0762     +1.0686
 Euro/Sterling    EURGBP=     0.8894         0.8911      -0.19%         +5.20%      +0.8919     +0.8867
 NZ               NZD=        0.6322         0.6291      +0.49%         -6.15%      +0.6326     +0.6264
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.5677         9.6023      -0.36%         +8.99%      +9.6453     +9.5230
 Euro/Norway      EURNOK=     10.6895        10.7025     -0.12%         +8.66%      +10.7300    +10.6490
 Dollar/Sweden    SEK=        9.3560         9.3514      +0.36%         +0.09%      +9.3887     +9.3265
 Euro/Sweden      EURSEK=     10.4551        10.4179     +0.36%         -0.13%      +10.4630    +10.4190
 
    

 (Reporting by Karen Brettell; additional reporting by Olga
Cotaga in London; editing by Jonathan Oatis)
  
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