UK Markets open in 7 hrs 48 mins

FOREX-Dollar jumps to four-month high; yen, Swiss franc fall for 4th day

By Gertrude Chavez-Dreyfuss

* Yen falls to two-week low; franc hits one-week trough * China says it achieved positive results in virus control * China says to halve addition tariffs on U.S. goods * Euro tumbles to four-month low after German data * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Recasts, adds new comment, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, Feb 6 (Reuters) - The dollar climbed to four-month highs against the euro and two-week peaks versus the yen on Thursday, bolstered by recent strong U.S. economic numbers as well as ebbing fears about the latest coronavirus that broke out in China few weeks ago. The safe-haven yen and Swiss franc struggled for a fourth straight session against the dollar, as investors' tolerance for risk increased, encouraged by the Chinese government's efforts to contain the latest coronavirus and limit the economic fallout. The Swiss currency fell to its weakest level in more than a week. The euro, meanwhile, also tumbled, sliding to a four-month low against the dollar after poor German data, which was in stark contrast to the more robust U.S. economic reports this week. "U.S. data hasn't been terrible for the most part," said Kathy Lien, managing director of BK Asset Management in New York. "And it looks like the virus is going to be contained and it's just a matter of time. So until data proves that the virus has a damaging impact on the economy, the market will continue to focus on earnings, which have been relatively good, as well as the strong U.S. data," she added. Chinese President Xi Jinping told Saudi Arabia's King Salman that China has achieved "positive" results in its prevention and control efforts in fighting the new coronavirus, the country's official Xinhua news agency reported on Thursday. That further added to the optimism. The People's Bank of China (PBOC), for its part, has pumped hundreds of billions of dollars into the financial system this week to cushion the potentially adverse economic impact of the virus. "We're seeing credible responses from monetary authorities, in China and it looks like it's soothing market fears of a more entrenched slowdown in the Chinese economy," said Simon Harvey, FX market analyst at Monex Europe in London. That said, the coronavirus has now claimed 563 lives, with more than 28,000 confirmed infections in China. A Reuters tally also showed that 260 cases have been reported in 31 countries and regions outside mainland China. In afternoon trading, the dollar rose 0.1% against the yen to 109.99, and gained 0.2% versus the franc to 0.9756 The euro fell against the dollar, weighed down by data showing German industrial orders unexpectedly plunged in December. Contracts for German goods fell 2.1% in December from November, the biggest drop since February. The euro was last down 0.2% at $1.0978. The euro's losses pushed the dollar index up 0.2% at 98.524, which also benefited from Thursday's solid U.S. initial jobless claims and productivity data. The dollar index earlier rose to 98.572, its highest since mid-October. The offshore Chinese yuan, meanwhile, was flat against the greenback, trading at 6.9786 yuan per dollar. ======================================================== Currency bid prices at 3:04 PM (2004 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.0977 $1.0997 -0.18% -2.08% +1.1013 +1.0965 Dollar/Yen JPY= 109.9500 109.8000 +0.14% +1.00% +109.9900 +109.7300 Euro/Yen EURJPY= 120.73 120.77 -0.03% -1.00% +121.0100 +120.5800 Dollar/Swiss CHF= 0.9750 0.9732 +0.18% +0.74% +0.9756 +0.9732 Sterling/Dollar GBP= 1.2924 1.3000 -0.58% -2.53% +1.3003 +1.2922 Dollar/Canadian CAD= 1.3286 1.3278 +0.06% +2.31% +1.3308 +1.3269 Australian/Doll AUD= 0.6732 0.6745 -0.19% -4.12% +0.6764 +0.6730 ar Euro/Swiss EURCHF= 1.0705 1.0704 +0.01% -1.35% +1.0724 +1.0696 Euro/Sterling EURGBP= 0.8494 0.8457 +0.44% +0.47% +0.8495 +0.8460 NZ NZD= 0.6460 0.6472 -0.19% -4.10% +0.6483 +0.6455 Dollar/Dollar Dollar/Norway NOK= 9.2219 9.2102 +0.13% +5.05% +9.2550 +9.1819 Euro/Norway EURNOK= 10.1248 10.1290 -0.04% +2.92% +10.1592 +10.0979 Dollar/Sweden SEK= 9.6261 9.5839 +0.27% +2.98% +9.6443 +9.5772 Euro/Sweden EURSEK= 10.5688 10.5400 +0.27% +0.95% +10.5835 +10.5329 (Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis and Chizu Nomiyama)