FOREX-Dollar edges lower amid uncertain U.S. outlook


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    * Dollar posts losses for the quarter and the month
    * Treasury's Munchin, Fed's Powell testify before Congress
    * UK economy posts worst quarter since 1979 
    * Weak sentiment amid pandemic worries
    * Graphic: World FX rates in 2020

 (Recasts with outlook from U.S. officials; updates prices;, adds analyst comment)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, June 30 (Reuters) - The dollar slipped on Tuesday, alternating between gains and losses, as
markets digested less bearish comments from U.S. monetary officials along with a more dire prognosis from
the country's top medical expert on the spread of the novel coronavirus.
    The dollar gained against the euro and the yen, but fell versus sterling, the Swiss franc, and
commodity currencies such as the Australian, New Zealand and Canadian dollars.
    Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell, in testimony before the
U.S. House of Representatives Financial Services Committee on Tuesday, suggested a willingness to do more
for the U.S. economy as it battles the enormous fallout from the virus outbreak.*:nL1N2E71M2
    Mnuchin said he is working with the House and the Senate to pass more coronavirus relief by the end of
July, while Powell said the Fed can lower the minimum loan threshold under the Main Street lending program
in the future.*:nL1N2E71M2
    On the other hand, Dr. Anthony Fauci, the head of the National Institute of Allergy and Infectious
Diseases, in remarks to a Senate committee on Tuesday warned of the risks of a surge in cases and said the
country should not bank on the availability of a safe and effective COVID-19 vaccine.*:nL1N2E71GY
    In early afternoon trading, the dollar index slipped to 97.380. For the quarter and month, the dollar
fell 1.6% and nearly 1.0%, respectively. It was the worst monthly performance for the dollar since
    "The dollar is consolidating right now," said Marc Chandler, chief market strategist, at Bannockburn
Forex in New York.
    "The upside on the dollar really began on June 10 and so I think we can see one more leg up in the
dollar," he said. "As we get into July, there is some uncertainty -- today for example is the last day of
the PPP (payroll protection program) and at the end of next month is the end of the unemployment claims,
unless it gets extended." 
    There are concerns as well on the resurgence in U.S. coronavirus cases.
    The United States saw a 46% increase in new cases of COVID-19 in the week ended June 28 compared with
the previous seven days, with 21 states reporting positive test rates above the level that the World
Health Organization has flagged as concerning.*:nL1N2E60N8
    In other currencies, the dollar gained 0.3% versus the yen, to 107.93 yen  JPY=EBS .
    The euro inched lower against the dollar to $1.1234. It was earlier pressured by data showing
underlying price pressures dropped again in the euro zone.*:nL8N2E72G7 
     Over the quarter, the euro staged a 1.6% comeback after falling by a similar margin during the first
three months of the year. For the month of June, the euro was up 0.9%.
   Traders said there remains a barrier of $1.1200 for the euro on the downside.
    Sterling reversed losses against the dollar to trade up 0.2% at $1.2328  GBP=D3 . The pound fell
earlier after data showed the economy shrank by 2.2% between January and March, its worst performance
since 1979, as households slashed spending.*:nL8N2E714Z
    The Swiss franc  CHF=EBS  gained against the dollar. The greenback was last down 0.5% at 0.9467 franc
    Currency bid prices at 2:49PM (1849 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1233        $1.1240     -0.06%         +0.21%      +1.1261     +1.1192
 Dollar/Yen       JPY=        107.9100       107.5600    +0.33%         -0.87%      +107.9700   +107.5300
 Euro/Yen         EURJPY=     121.24         120.92      +0.26%         -0.58%      +121.4100   +120.5900
 Dollar/Swiss     CHF=        0.9469         0.9511      -0.44%         -2.16%      +0.9532     +0.9463
 Sterling/Dollar  GBP=        1.2385         1.2296      +0.72%         -6.59%      +1.2392     +1.2259
 Dollar/Canadian  CAD=        1.3587         1.3657      -0.51%         +4.63%      +1.3699     +1.3590
 Australian/Doll  AUD=        0.6897         0.6864      +0.48%         -1.77%      +0.6911     +0.6834
 Euro/Swiss       EURCHF=     1.0640         1.0692      -0.49%         -1.95%      +1.0699     +1.0632
 Euro/Sterling    EURGBP=     0.9068         0.9138      -0.77%         +7.26%      +0.9144     +0.9070
 NZ               NZD=        0.6453         0.6419      +0.53%         -4.20%      +0.6461     +0.6386
 Dollar/Norway    NOK=        9.6335         9.6711      -0.39%         +9.74%      +9.7682     +9.6220
 Euro/Norway      EURNOK=     10.8267        10.8720     -0.42%         +10.05%     +10.9500    +10.8255
 Dollar/Sweden    SEK=        9.3115         9.3280      -0.22%         -0.38%      +9.3872     +9.2825
 Euro/Sweden      EURSEK=     10.4640        10.4872     -0.22%         -0.05%      +10.5240    +10.4510
 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrea Ricci and Leslie Adler)
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