(New everywhere; changes date line, previous LONDON)
By Kate Duguid
NEW YORK, May 11 (Reuters) – The dollar rose on Monday against the Japanese yen and the euro as investors worried that the economic recovery might be slower than hoped and sought U.S. security. currency.
Safe-haven appeal raised the dollar against its largest New York peers tomorrow as investors adjusted their risk expectations with an eye for warnings of another wave of COVID-19 infections as more countries eased the restrictions on lockdown.
Germany reported on Monday that new coronavirus infections accelerated exponentially after early steps to facilitate its closure, news that sounds like a global alarm, even as companies opened from Paris hair salons to Shanghai Disneyland. South Korea also experienced infections rebound to a month’s height.
Japan said on Monday it could end its emergency in many regions this week, and New Zealand said it could ease the restrictions Thursday. The United Kingdom has also made plans to ease the closure while stores in France reopen Monday.
Some risk values including U.S. Stocks strengthened last week due to cautious optimism about a financial recovery, but that attitude has been difficult to maintain, said Joe Manimbo, senior market analyst at Western Union Business Solutions.
“Maintaining optimism has proven to be a tough task after last week’s unprecedented U.S. employment report, which saw a record loss of more than 20 million jobs in April, pushing unemployment to nearly 15%, the highest since the Great Depression. Expectations that unemployment could be 20% in the coming months dampened the hope of a strong recovery in the latter half of the year, strengthening the greenback. ”
Against a basket of six rival currencies, the dollar last rose 0.31% to 100.1. The Japanese yen with safe harbor hit a 15-day low versus the dollar, down about 0.82%, after a U.S. buyer bought a large amount of dollar-yen, forcing the pair over 107.
The euro fell against the dollar, although it had withdrawn some of this movement in the middle of the morning, last down about 0.19% to $ 1,082.
The dollar this week will take its cues from Federal Reserve Chairman Jerome Powell’s speech Wednesday, and information on inflation, unemployment and retail consumption, according to Manimbo.
Balancing the global risk sentiment is also the prospect of exacerbating tensions between the United States and China.
A settlement call between U.S. and China’s trade dealers on Friday fend off fears of an imminent new round of the U.S. tariffs. But the U.S. President Donald Trump said he was “very torn” as to whether or not to conclude the preliminary Phase 1 trade agreement between the two countries.
Reporting by Kate Duguid in New York and Elizabeth Howcroft i
Editing by Nick Zieminski