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FOREX-Yen, Swiss franc fall for 4th day as investors stay risk-tolerant

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 two-month low after German data * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Recasts, adds new comment, U.S. data, FX table, updates prices, changes byline, dateline, previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, Feb 6 (Reuters) - The safe-haven yen and Swiss franc struggled for a fourth straight session against the U.S. dollar on Thursday, as investors' tolerance for risk increased, encouraged by the Chinese government's efforts to contain the latest coronavirus and limit the economic fallout. The Japanese currency dropped to a two-week low versus the dollar, while the franc fell to its weakest level in more than a week. Investors also cheered news that China would cut in half the additional tariffs imposed on 1,717 U.S. goods last year, following the signing of a Phase 1 trade deal. "A lot of the risk-off moves over the last two weeks are being unwound," said Simon Harvey, FX market analyst at Monex Europe in London. "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," he added. Chinese President Xi Jinping told Saudi Arabia's King Salman by telephone 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 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. 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 midmorning trading, the dollar rose 0.1% against the yen to 109.92, and slid 0.2% versus the franc to 0.9754 The euro, meanwhile, tumbled to a two-month low against the dollar, weighed down by data showing German industrial orders unexpectedly plunged in December. That suggested that the euro zone economy would remain sluggish in the opening months of 2020. Contracts for German goods fell 2.1% in December from November, the biggest drop since February. A Reuters poll had forecast a 0.6% rise. The euro's losses pushed the dollar index up 0.1% to 98.432, which benefited as well from Thursday's solid U.S. economic data. The number of Americans filing for unemployment benefits dropped to a nine-month low last week, falling to 202,000 for the week ended Feb. 1. A separate report showed nonfarm productivity, which measures hourly output per worker, increased at a 1.4% annualized rate last quarter. "The overall narrative for the U.S. economy is that it's still in a very strong position compared to other developed markets," said Monex's Harvey. The offshore Chinese yuan, meanwhile, was little changed against the greenback, trading at 6.9770 yuan per dollar, after weakening to 7 per dollar on Monday. Broader market volatility fell to new lows, with one-month implied euro-dollar price swings dropping to a record low of 3.7% this week. ======================================================== Currency bid prices at 10:40 AM (1540 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.0975 $1.0997 -0.20% -2.10% +1.1013 +1.0973 Dollar/Yen JPY= 109.9400 109.8000 +0.13% +0.99% +109.9800 +109.7300 Euro/Yen EURJPY= 120.68 120.77 -0.07% -1.04% +121.0100 +120.6300 Dollar/Swiss CHF= 0.9750 0.9732 +0.18% +0.74% +0.9755 +0.9732 Sterling/Dollar GBP= 1.2945 1.3000 -0.42% -2.37% +1.3003 +1.2938 Dollar/Canadian CAD= 1.3295 1.3278 +0.13% +2.41% +1.3308 +1.3269 Australian/Doll AUD= 0.6733 0.6745 -0.18% -4.10% +0.6764 +0.6731 ar Euro/Swiss EURCHF= 1.0705 1.0704 +0.01% -1.35% +1.0724 +1.0704 Euro/Sterling EURGBP= 0.8479 0.8457 +0.26% +0.30% +0.8494 +0.8460 NZ NZD= 0.6455 0.6472 -0.26% -4.17% +0.6483 +0.6455 Dollar/Dollar Dollar/Norway NOK= 9.2386 9.2102 +0.31% +5.24% +9.2454 +9.1819 Euro/Norway EURNOK= 10.1428 10.1290 +0.14% +3.08% +10.1592 +10.0979 Dollar/Sweden SEK= 9.6315 9.5839 +0.31% +3.04% +9.6376 +9.5772 Euro/Sweden EURSEK= 10.5722 10.5400 +0.31% +0.98% +10.5835 +10.5329 (Reporting by Gertrude Chavez-Dreyfuss; additional reporting by Saikat Chatterjee in London; editing by Jonathan Oatis)