* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
SINGAPORE, Jan 18 (Reuters) - The dollar held late-week
gains on Monday as softening U.S. economic data and rising
coronavirus cases turned investors cautious.
Against a basket of currencies =USD the dollar hovered
around a one-month high of 90.887 hit in early trade and the
mood also supported the safe-haven yen against other majors.
The euro EUR=EBS eased slightly to touch a six-week low of
$1.2066 and the risk-sensitive Australian dollar AUD=D3
slipped 0.3% to a one-week low of $0.7679.
Trade was choppy and moves modest ahead of of a raft of
Chinese economic data, including GDP numbers due mid-morning,
with fourth quarter GDP expected to show a further pickup in
growth to 6.1% year-on-year. The safety bid has added to support for the dollar since the
Democrats won control of U.S. Congress a fortnight ago, which
triggered a surge in U.S. yields as investors priced in fewer
fetters on a borrow-and-spend administration.
The dollar index is up about 1.9% since then and the euro,
which surged in 2020, has slipped more than 2% as the dollar's
bounce has coincided with surging virus cases and a political
crisis in Italy that have cast doubt on the region's recovery.
Sterling on Monday sat at a one-week low of $1.3567 and the
yen JPY= was steady at 103.83 per dollar, although it advanced
to a three-week high of 125.29 per euro EURJPY= .
The New Zealand dollar NZD=D3 eased 0.1% to a three-week
low of $0.7117. NZD/
"Optimism is being challenged as the reality of a tough few
months is upon us," ANZ analysts wrote in a note to clients.
"The near-term outlook for consumption, the main driver of
economic growth, is poor."
U.S. retail sales fell for a third straight month in
December, data showed on Friday, as renewed measures to slow the
spread of COVID-19 triggered job losses. The worldwide coronavirus death toll surpassed 2 million on
Friday and the World Health Organization has warned the worst
could be ahead. Later in the week, U.S. President-elect Joe Biden is due to
be inaugurated in a heavily-guarded Washington against the risk
of more mob violence, with investors also beginning to doubt how
much of his stimulus plans can make it through Congress.
Biden's pick for Treasury Secretary, Janet Yellen, is
expected to rule out seeking a weaker dollar when testifying on
Capital Hill on Tuesday, the Wall Street Journal reported.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates https://tmsnrt.rs/2RBWI5E
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>