* Dollar raises slightly; Japanese yen falls 0.6%
* Markets look for recovery from global pandemic
* Graphics: World Currency Rates in 2019 http://tmsnrt.rs/2egbfVh (Updates prices everywhere, adds Riksbank, analyst comments, chart)
By Elizabeth Howcroft
LONDON, May 11 (Reuters) – The dollar rose Monday as investors worried that economic recovery could be slower than hoped and sought U.S. security. currency, although several countries facilitated the shutdown of coronavirus.
The dollar was broadly flat overnight, but rose in early London trading as investors adjusted their risk expectations with an eye on warnings of another wave of COVID-19 infections.
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.
South Korea warned of another wave of the virus as infections rose again to a month’s height and new infections have also accelerated in Germany.
“More of a risk-off tone has taken over early this week,” said Lee Hardman, currency strategist at MUFG, who said there were some concerns that the reopening of economies in places like Germany may have led to for a pick up rate of infection.
Against a basket of comparable currencies, the dollar rose 0.3% since New York’s closing at 100.090.
The Japanese safe-haven yen hit a low 10-day against the dollar, down about 0.6% after a U.S. buyer bought a large amount of dollar-yen, forcing the pair over 107.
Balancing the global risk sentiment is also the prospect of exacerbating tensions between the U.S. 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. tarrifs. But the U.S. President Donald Trump said he was “very torn” as to whether to conclude the initial Phase 1 trade agreement between the two countries.
On Monday, China warned that it will take countermeasures in response to a U.S. decision to tighten visa conditions for Chinese journalists. That news did not move the market, analysts said.
The euro fell against the dollar, last down about 0.3% at $ 1.08165.
“Developments in the euro area hold eurozone stocks and banks worse than the rest of the world, which does not help the euro,” Morgan Stanley analysts wrote in a note to customers.
The riskier Australian dollar fell 0.7% against the US. while the New Zealand dollar fell 0.9% after falling from around 0400 GMT.
The Swedish krona fell about 0.5% against the dollar, weakening to as much as 9.8150, and also fell by about 0.2% against the euro at 10.5985.
Minutes from the Riksbank’s latest meeting, published on Monday, showed that Swedish interest rate developers were united in seeing balance sheet measures as currently the best way to conduct policy amid the outbreak of the new coronavirus.
“EUR / SEK is approaching attractive levels to buy, the pair is oversold and no longer reflects the likely easing of the central bank coming up. We suggest buying EUR / SEK at dips down to 10.55 (the long-term support) and the target 11.20, ”Morgan Stanley analysts wrote.
“Overall, the factors that have strengthened the EUR / SEK strength over the last eight years continue to hold,” they added.
(Reporting by Elizabeth Howcroft, Editing by Ed Osmond and Philippa Fletcher)