(Fixes typographical error in first paragraph; removes second bullet point)
* U.S. economy creates 4.8 mln jobs
* Dollar on pace to post losses for 2nd straight week
* Florida virus cases surge
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Gertrude Chavez-Dreyfuss
NEW YORK, July 2 (Reuters) - The U.S. dollar rose on Thursday, regaining its safe-haven appeal, as
investors worried that the resurgence of U.S. coronavirus cases could erase the summer's employment gains.
U.S. financial markets closed on Friday for the July 4th Independence Day holiday.
In early trading, the dollar fell as risk appetite increased after data showed the world's largest
economy created jobs in June at a far faster pace than market forecasts. But that optimism waned on
reports of more U.S. cases of COVID-19.
Florida reported more than 10,000 new cases, the biggest daily increase in the state since the
pandemic started, according to a Reuters tally. A day earlier, the number of cases nationwide shot up by nearly 50,000, the fourth record rise in
infections in the last seven days, following moves in many states to allow businesses to reopen from
strict shutdowns.
"Dollar performance will hinge on the U.S. response to COVID," said Juan Perez, senior currency
trader at Tempus Inc. in Washington. "On that end, the U.S. is losing because the situation is far more
difficult than in other parts of the world."
Despite Thursday's rise, the greenback posted its second straight week of losses against a basket of
major currencies.
In early trading, the dollar hit session lows against the euro and held onto losses against a major
currency basket after data showed that U.S. nonfarm payrolls increased by 4.8 million jobs in June, the
most since the government started keeping records in 1939.
Payrolls rebounded 2.699 million in May. Economists polled by Reuters had forecast payrolls increasing
by 3 million jobs in June. The unemployment rate fell to 11.1% last month from 13.3% in May, diminishing the dollar's appeal as a
safe haven.
That said, Dave Rosenberg, chief economist and strategist at Rosenberg Research said it was important
to put some perspective to the jobs report.
He said the survey took place in the week in June where every state had re-opened and "all you have to
do in the payroll survey to be counted as 'employed' is to have worked just one hour in the survey week."
"We know that since then, around 40% of the states have now been forced to halt, or curtail their
re-opening phases with the renewed jump in the coronavirus case count, so we shall see what July brings a
month from now," Rosenberg added.
In afternoon trading, the dollar index rose 0.1% to 97.269 =USD , as the euro fell 0.1% versus the
greenback to $1.1235 EUR=EBS .
Despite the dollar's recent spell of weakness, the greenback was still up about 2.5% from the 2020 low
of 94.6 in the dollar index hit in early March. A Reuters poll predicts more weakness for the greenback
over the next 12 months due to weak global demand. The dollar gained 0.1% against the yen to 107.54 yen JPY=EBS .
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Currency bid prices at 3:13 PM (1913 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1234 $1.1250 -0.14% +0.22% +1.1302 +1.1224
Dollar/Yen JPY= 107.5400 107.4600 +0.07% -1.21% +107.7200 +107.3400
Euro/Yen EURJPY= 120.82 120.90 -0.07% -0.93% +121.4300 +120.7700
Dollar/Swiss CHF= 0.9456 0.9457 -0.01% -2.29% +0.9464 +0.9427
Sterling/Dollar GBP= 1.2462 1.2470 -0.06% -6.01% +1.2529 +1.2457
Dollar/Canadian CAD= 1.3578 1.3585 -0.05% +4.56% +1.3623 +1.3560
Australian/Doll AUD= 0.6923 0.6914 +0.13% -1.40% +0.6952 +0.6902
ar
Euro/Swiss EURCHF= 1.0623 1.0640 -0.16% -2.11% +1.0661 +1.0618
Euro/Sterling EURGBP= 0.9014 0.9018 -0.04% +6.62% +0.9032 +0.9003
NZ NZD= 0.6512 0.6475 +0.57% -3.33% +0.6536 +0.6475
Dollar/Dollar
Dollar/Norway NOK= 9.5323 9.5133 +0.20% +8.59% +9.5684 +9.4396
Euro/Norway EURNOK= 10.7120 10.7025 +0.09% +8.89% +10.7495 +10.6480
Dollar/Sweden SEK= 9.3181 9.3064 +0.00% -0.31% +9.3394 +9.2378
Euro/Sweden EURSEK= 10.4714 10.4716 +0.00% +0.02% +10.4915 +10.4313
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USD positions https://tmsnrt.rs/31P1RPZ
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