* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Recasts with sterling move, adds quotes, updates prices)
By Karen Brettell
NEW YORK, April 6 (Reuters) - Sterling dropped against the
dollar and the euro on Monday after it was reported that British
Prime Minister Boris Johnson has been moved into intensive care
after his COVID-19 worsened.
"Over the course of this afternoon, the condition of the
Prime Minister has worsened and, on the advice of his medical
team, he has been moved to the Intensive Care Unit at the
hospital," Downing Street said. Sterling GBP= dropped against the greenback to $1.225,
from around $1.230 before the report. The euro EURGBP= gained
to 0.881 pence against to pound, from 0.877 pence before the
news.
“If he is impaired from resuming his official duties, then
it creates some complications but we have to wait and watch,"
said Ilan Solot, an FX strategist at Brown Brothers Harriman.
British Foreign Minister Dominic Raab is designated to take
over leadership of the country if Johnson is unable to fulfil
his role. “It is unclear what the emergency succession plan would be
for the prime minister. Markets hate uncertainty and this does
not bode well for further steps in battling COVID-19 and for
future Brexit trade negotiations,” said Edward Moya, senior
market analyst at OANDA in New York.
The drop in sterling came as the market more broadly
reflected stronger risk appetite on optimism that the spread of
the novel coronavirus in the United States and Europe could be
tapering.
The governors of New York and New Jersey said on Monday
their states were showing tentative signs of a "flattening" of
the coronavirus outbreak, but they warned against complacency as
the nationwide death toll topped 10,000 and the number of cases
reached 350,000. European nations including hard-hit Italy and Spain have
started looking ahead to easing coronavirus lockdowns after
steady falls in fatality rates. "Today's currency moves are following the risk-on playbook
closely,” analysts at Wells Fargo led by Erik Nelson said in a
report on Monday.
The Australian dollar AUD= jumped 1.55% to $0.6088.
The dollar gained 0.64% against the Japanese currency JPY=
to 109.14 yen.
Japan is to impose a state of emergency in Tokyo and six
other prefectures as early as Tuesday to contain the
coronavirus, while the government prepares a $990 billion
stimulus package to soften the economic blow. But, "we think today's JPY weakness has more to do with the
strength in global equities than reports of a possible state of
emergency declaration in Tokyo,” Wells Fargo said.
The euro dipped before euro zone finance ministers are
expected to converge on Tuesday on three quick options to
support the economy during the epidemic. Officials have until April 9 to design a package that
satisfies members with completely opposing views: those calling
for joint debt issuance and those fiercely against it.
The single currency EUR= was last down 0.11% against the
dollar at $1.0796.
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Currency bid prices at 4:02PM (2002 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0796 $1.0808 -0.11% -3.69% +1.0834 +1.0769
Dollar/Yen JPY= 109.1400 108.4500 +0.64% +0.26% +109.3700 +108.3600
Euro/Yen EURJPY= 117.84 117.20 +0.55% -3.37% +118.3000 +117.2200
Dollar/Swiss CHF= 0.9780 0.9777 +0.03% +1.05% +0.9797 +0.9762
Sterling/Dollar GBP= 1.2243 1.2260 -0.14% -7.66% +1.2326 +1.2211
Dollar/Canadian CAD= 1.4103 1.4201 -0.69% +8.60% +1.4261 +1.4085
Australian/Doll AUD= 0.6088 0.5995 +1.55% -13.29% +0.6105 +0.5992
ar
Euro/Swiss EURCHF= 1.0561 1.0555 +0.06% -2.68% +1.0581 +1.0551
Euro/Sterling EURGBP= 0.8817 0.8799 +0.20% +4.29% +0.8855 +0.8766
NZ NZD= 0.5932 0.5869 +1.07% -11.94% +0.5962 +0.5851
Dollar/Dollar
Dollar/Norway NOK= 10.4125 10.5226 -1.05% +18.62% +10.5983 +10.4055
Euro/Norway EURNOK= 11.2426 11.4530 -1.84% +14.28% +11.4693 +11.2463
Dollar/Sweden SEK= 10.1040 10.1457 -0.83% +8.09% +10.2027 +10.1064
Euro/Sweden EURSEK= 10.9134 11.0050 -0.83% +4.24% +11.0284 +10.9160