- Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
- Dollar edges lower as investors focus on economic recovery
- Coronavirus remains a risk to markets
- Traders avoid big positions before summer holidays
The dollar nursed losses against most currencies on Thursday as a rally in riskier assets such as global equities and commodities put a dent in safe-haven demand for the U.S. currency.
Traders in Asia are focused on whether China's yuan can extend gains against the greenback as investors of all stripes shift funds to increase positions in Chinese stocks.
Lingering worries about the spread of the coronavirus could keep some currency pairs in a tight range, but the dollar's losses are gradually increasing as sentiment favours riskier bets on long-term economic growth.
"Rising stocks and a dip in Treasury yields are slight negatives for the dollar, but the market can't move too far because we still have to worry about the virus," said Minori Uchida, head of global market research at MUFG Bank.
"A lot of major U.S. economic data have been positive, so this will be less of a trading factor going forward. People are looking for cues from stocks, yields, and hedging costs."
The dollar bought 0.9384 Swiss franc CHF=EBS on Thursday in Asia, close to the lowest in almost four months.
Against the euro EUR= , the dollar was quoted at $1.1334, close to a three-week low.
The greenback was also close to a three-week low against the pound GBP= , last trading at $1.2614.
Sterling held steady at 89.86 pence per euro EURGBP=D3 . The dollar was little changed at 107.32 yen JPY= . Asian stocks rose on Thursday in a sign that financial markets are following gains in the tech-heavy Nasdaq .IXIC to a record closing high on Wednesday.
A light event calendar in Asia on Thursday could keep some currency pairs in tight ranges, but analysts said sentiment favours more dollar declines as investors try to look past a recent spike in coronavirus cases in some countries.
The coronavirus pandemic is a global phenomenon, but success in containing the virus varies greatly from region to region, which has discouraged some investors from taking big positions before the traditional summer holiday season.
Elsewhere in currencies, the Australian dollar AUD=D3 rose to $0.6990, approaching its strongest level in a month.
The New Zealand dollar NZD=D3 was little changed at $0.6578, also close to a one-month high.
