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FOREX-Dollar climbs from four-week low as U.S. stocks decline
Published at 09/07/2020 at 19:02

* U.S. COVID cases surge on Wednesday

* NY prosecutor can get Trump's financial records -Supreme Court

* Euro falls from 1-month high vs dollar

* Chinese yuan rises to four-month peak vs dollar

* Graphic: World FX rates in 2020

(Adds new comment, updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, July 9 (Reuters) - The dollar rallied from a four-week low on Thursday, as weaker U.S. stocks enhanced the currency's safe-haven appeal for investors following a surge in new coronavirus cases and a U.S. Supreme Court ruling on President Donald Trump's financial records.

The euro fell from a one-month high versus the dollar, while commodity currencies, which tend to rise when risk appetite increases, also slid against the greenback.

The dollar rally coincided with the Supreme Court ruling on Thursday that a New York prosecutor can obtain Trump's financial records. But it did prevent, at least for now, the Democratic-led House of Representatives from obtaining the same records.

"The dollar over the last few weeks has been trading on risk-taking levels and taken on its role as a safe haven," said Ronald Simpson, managing director, global currency analysis at Action Economics in Florida.

"The Supreme Court ruling had a big impact on everything: the dollar rose, (Treasury) yields fell, and stocks got slammed. It puts some risk on Trump right now that something bad may come out," he added.

Earlier in the global session, the dollar struggled, with the Chinese yuan climbing to a four-month peak, as investors increased positions in Chinese stocks on growing signs of a recovery in the world's second-largest economy.

Market sentiment turned, however, during the U.S. session. Another contributing factor, apart from the Supreme Court decision, was the renewed surge in COVID cases.

More than 60,000 new COVID-19 infections were reported on Wednesday and U.S. deaths rose by more than 900 for the second straight day, the most since early June.

U.S. stocks fell on Thursday, a day after hitting a record closing high. The dollar continues to move in opposition to stocks and risk appetite.

Analysts believed though that despite losses, stocks should remain well-supported on dips.

"The risk backdrop should remain more or less positive for the foreseeable future, given the global fiscal and monetary policy setting," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto.

In early afternoon trading, the dollar index rose 0.3% to 96.741 , after falling to a four-week low of 96.233.

The euro dropped 0.3% to $1.1291, not that far from a one-month high around $1.1371 hit earlier in the day even after German export data failed to meet analysts' expectations.

The Chinese yuan soared to a four-month high of 6.9808 in the offshore market and was last little changed against the dollar at 6.9950 .

The dollar was flat against the yen at 107.25 yen and was up 0.3% versus the Swiss franc at 0.9402 franc .


Currency bid prices at 1:44PM (1744 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Euro/Dollar EUR= $1.1292 $1.1329 -0.33% +0.73% +1.1370 +1.1286

Dollar/Yen JPY= 107.2300 107.2500 -0.02% -1.50% +107.3900 +107.1100

Euro/Yen EURJPY= 121.09 121.51 -0.35% -0.71% +121.9600 +121.1000

Dollar/Swiss CHF= 0.9401 0.9381 +0.21% -2.86% +0.9405 +0.9363

Sterling/Dollar GBP= 1.2616 1.2609 +0.06% -4.85% +1.2669 +1.2601

Dollar/Canadian CAD= 1.3567 1.3510 +0.42% +4.47% +1.3586 +1.3491

Australian/Doll AUD= 0.6958 0.6982 -0.34% -0.90% +0.7000 +0.6951


Euro/Swiss EURCHF= 1.0615 1.0630 -0.14% -2.17% +1.0647 +1.0613

Euro/Sterling EURGBP= 0.8948 0.8982 -0.38% +5.84% +0.9000 +0.8947

NZ NZD= 0.6564 0.6574 -0.15% -2.55% +0.6600 +0.6553


Dollar/Norway NOK= 9.4511 9.3754 +0.81% +7.66% +9.4675 +9.3432

Euro/Norway EURNOK= 10.6720 10.6310 +0.39% +8.48% +10.6934 +10.6084

Dollar/Sweden SEK= 9.2148 9.1726 +0.09% -1.42% +9.2334 +9.1481

Euro/Sweden EURSEK= 10.4079 10.3988 +0.09% -0.59% +10.4268 +10.3762

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Yuan strengthens


(Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrea Ricci and Richard Chang)

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