FOREX-Dollar advances for 2nd day, shrugs off record U.S. jobless claims

Reuters

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    * Dollar up vs euro, Japanese yen
    * U.S. jobless claims surge to record
    * Norwegian crown up nearly 2% amid better dollar liquidity
    * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

 (Adds U.S. jobless claims data, new comment, FX table, updates prices; changes byline, dateline; previous
LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, April 2 (Reuters) - The dollar rose for a second straight day against a basket of currencies
on Thursday as investors, worried about the prospect of a global recession continued to take shelter in
the greenback.
    U.S. jobless claims in the latest week soared to a record level, yet the dollar's reaction was tepid
at most.
    Data showed initial claims for unemployment benefits rose to 6.65 million in the latest week from an
unrevised 3.3 million the previous week. The figures far exceeded the median estimate of 3.50 million in a
Reuters survey of economists.  urn:newsml:reuters.com:*:nAQN006QXN
    "The order of magnitude of this data is so colossal compared to expectations that there's really no
datum to work out what the story is," said Richard Benson, co-chief investment officer at Millennium
Global Investments in London.
    "It's just very, very bad. So I am not sure the market is going to trade on data surprises from that
mix," he added.
     Markets have been alarmed since U.S. President Donald Trump's warning on Tuesday of a painful two
weeks ahead in fighting the coronavirus, even with strict social distancing measures.  urn:newsml:reuters.com:*:nL1N2BP02Q
    The United States now has over 200,000 confirmed COVID-19 cases - the most worldwide - which has sent
investors flocking to safe-haven assets such as the U.S. dollar.
     Still, analysts do not expect the dollar rally of recent weeks to continue further amid a series of
measures aimed to make sure that there is no global shortage of dollars.  urn:newsml:reuters.com:*:nL1N2BK1J5
    The cost to borrow dollars in the euro and yen funding markets fell considerably after the Fed
liquidity injections, with three-month FX swap spreads snapping back from 2008 global financial crisis
levels last month.    
    Costs blew out in mid-March as stress in the dollar funding market caused by the coronavirus pandemic
led to a global scramble to secure dollar funds.  EURCBS3M=ICAP   JPYCBS3M=ICAP 
    In mid-morning trading, the dollar index was up 0.7% at 100.19  =USD .
    Against the yen, the dollar rose 0.2% at 107.33 yen  JPY=EBS .
    The euro, meanwhile, continued its decline, falling 1.1% to $1.0843  EUR=EBS  
    The Fed's efforts to improve dollar liquidity have turned out to be beneficial for other currencies
too, such as the Norwegian crown, which advanced further on Thursday to hit a three-week high of 11.1820
against the euro. It was last trading up 2% at 11.24  EURNOK=D3 
    To combat the economic slowdown inflicted by the pandemic, the Fed said on Wednesday it was
temporarily easing its leverage rules for large banks by exempting certain investments from a key leverage
calculation.  urn:newsml:reuters.com:*:nL1N2BP2M4
    
    ========================================================
    Currency bid prices at 9:58AM (1358 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.0849        $1.0962     -1.03%         -3.21%      +1.0968     +1.0842
 Dollar/Yen       JPY=        107.2700       107.1500    +0.11%         -1.46%      +107.5600   +107.0300
 Euro/Yen         EURJPY=     116.40         117.48      -0.92%         -4.55%      +117.7200   +116.3600
 Dollar/Swiss     CHF=        0.9720         0.9654      +0.68%         +0.44%      +0.9729     +0.9651
 Sterling/Dollar  GBP=        1.2369         1.2376      -0.06%         -6.71%      +1.2474     +1.2353
 Dollar/Canadian  CAD=        1.4255         1.4188      +0.47%         +9.77%      +1.4298     +1.4081
 Australian/Doll  AUD=        0.6020         0.6070      -0.82%         -14.26%     +0.6119     +0.6008
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0547         1.0582      -0.33%         -2.81%      +1.0594     +1.0547
 Euro/Sterling    EURGBP=     0.8770         0.8858      -0.99%         +3.74%      +0.8861     +0.8758
 NZ               NZD=        0.5888         0.5905      -0.29%         -12.59%     +0.5973     +0.5882
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        10.4466        10.4310     +0.15%         +19.02%     +10.4738    +10.2252
 Euro/Norway      EURNOK=     11.3357        11.4640     -1.12%         +15.19%     +11.4785    +11.1816
 Dollar/Sweden    SEK=        10.1365        9.9826      -0.07%         +8.43%      +10.1484    +9.9849
 Euro/Sweden      EURSEK=     11.0004        11.0085     -0.07%         +5.07%      +11.0145    +10.9102
 
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Olga Cotaga in London
Editing by Alistair Bell)
 ((gertrude.chavez@thomsonreuters.com; 646-223-6322; Reuters Messaging:
rm://gertrude.chavez.reuters.com@reuters.net))

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