FOREX-Dollar dips as pandemic worries persist despite some signs of hope

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Pound on edge as Johnson enters intensive care
* Dollar grinding higher on signs coronavirus flattening
* Coronavirus pandemic roils global economy

By Stanley White
TOKYO, April 7 (Reuters) - The dollar fell against the yen
on Tuesday as underlying concerns about the economic shock
wrought by the coronavirus crisis kept many investors on edge.
The pound clawed back some recent losses against the dollar,
but sentiment for sterling remains fragile after British Prime
Minister Boris Johnson was moved to intensive care after his
coronavirus symptoms worsened.
The yen cheered Japanese Prime Minister Shinzo Abe's
unveiling of a massive fiscal stimulus worth almost $1 trillion
to offset the economic impact of the pandemic.
Traders warned that further gains in the yen may be limited
because Abe has agreed to declare a state of emergency for Tokyo
and other parts of Japan to slow coronavirus infections.
Many investors are looking for signs of a peak in the
pandemic, but some analysts warn of volatility given the
unpredictable nature of the previously unknown virus.
"Signs of a slowdown in the spread of coronavirus provided
markets a boost, but the reality is we cannot be certain, so
it's natural for the dollar to come lower," said Takuya Kanda,
general manager of the research department at Gaitame.com
Research Institute in Tokyo.
"It's difficult to trade solely on the factors from one
country, because so many countries are in a bad state because of
coronavirus."
The dollar fell 0.43% to 108.76 yen JPY= on Tuesday.
Against the euro EUR=EBS , the dollar eased to $1.0837.
The greenback fell 0.33% to 0.9753 Swiss franc CHF=EBS .
The dollar came into Asian trade on a positive note as risk
sentiment improved after the governors of New York and New
Jersey pointed to tentative signs that outbreaks in their states
was starting to plateau, but some traders remain
cautious. The pound GBP=D3 rose 0.38% to $1.2394 on Tuesday
following a 0.3% decline on Monday. Against the euro, sterling
EURGBP=D3 held steady at 88.21 pence.
Johnson was admitted to hospital on Sunday night and had
been undergoing tests after suffering persistent coronavirus
symptoms, including a high temperature, for more than 10 days.
Downing Street had said he was still conscious, though his
condition deteriorated in the early evening. Britain has no formal succession plan should the prime
minister become incapacitated, but Johnson has asked Foreign
Secretary Dominic Raab to deputise for him. The Chinese yuan CNY=CFXS rose to a 1-1/2-week high
against the dollar, buoyed by expectations of more government
economic support measures and further signs that the coronavirus
outbreak is receding in China, where the novel virus first
emerged late last year. Japanese currency fell against the antipodean currencies
AUDJPY= NZDJPY= , but analysts cautioned against reading too
much into the yen's moves because volumes are falling as more
traders and corporate customers work from home.
Japan's prime minister is set to announce a state of
emergency on Tuesday for the capital Tokyo and six other
prefectures to stem a worrying rise in virus infections in major
population centres.
Abe said the emergency would last around a month and give
governors the authority to call on people to stay at home and
businesses to close. It would stop short of imposing a formal
lockdown.
The Australian dollar AUD=D3 jumped 1% against its U.S.
counterpart, while the New Zealand dollar also rose by 0.9%
against the greenback as investors felt more comfortable buying
currencies sensitive to risk.
The Reserve Bank of Australia kept policy on hold at a
meeting today after it already slashed interest rates and
embarked on quantitative easing. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
China's case count and economic recovery IMAGE https://reut.rs/2UCuls4
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