* Euro zone PMIs indicate renewed growth on the continent
* Euro hits fresh 22-month high
* Dollar falls to 4-month lows vs yen
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Updates to midafternoon, changes byline)
By Chuck Mikolajczak
NEW YORK, July 24 (Reuters) - The safe-haven yen rose on Friday to its highest in more than four-months, while the dollar slumped to near a two-year low, as risk appetite waned due to a host of concerns including a continued rise in coronavirus cases, a delay in the U.S. stimulus package bill and simmering U.S.-China tensions.
The dollar posted its biggest weekly decline in almost four months against a basket of currencies and also saw its largest weekly percentage loss against a surging euro since late March.
"The first key thing is the Fed has knocked real rates down into negative territory, you have economic growth differentials turning against the U.S., so essentially the second wave of coronavirus infections is lowering activity across the states and is weighing on the likelihood of a rebound," said Karl Schamotta, chief market strategist at Cambridge Global Payments.
"At the same time you have relatively positive signs elsewhere in the global economy."
The U.S. Federal Reserve is scheduled to hold a two-day policy meeting next week.
U.S. coronavirus cases passed the 4 million mark. The pandemic has killed more than 143,000 Americans and thrown tens of millions out of work.
Senate Majority Leader Mitch McConnell said on Thursday that U.S. Senate Republicans will unveil their proposal next week for a new round of coronavirus aid, including more direct payments to Americans and a partial extension of enhanced unemployment benefits. added that the administration has requested additional time to review the fine details of the proposal.
U.S. unemployment benefits expire next week and without the extension of those benefits, millions of unemployed Americans would struggle massively. U.S. House Speaker Nancy Pelosi said on Friday she was not considering a temporary extension to enhanced unemployment benefits. afternoon trading, the dollar fell 0.8% against the yen to 105.99 yen JPY=EBS , having dropped to 105.68 yen, the lowest since mid-March.
Against a basket of currencies, the dollar slid 0.4% to 94.42 =USD . Earlier in the session, it plunged to 94.358, a fresh 22-month low.
Analysts said U.S.-China tensions also undermined the dollar.
China's foreign ministry told the U.S. embassy early on Friday to close its consulate in the city of Chengdu, after Washington ordered the closure of the Chinese consulate in Houston, which U.S. officials called on Friday "one of the worst offenders in terms of Chinese espionage in the United States." euro, meanwhile, hit a fresh 22-month high against the dollar and was last up 0.4% at $1.16415 EUR=EBS .
IHS Markit's composite flash July Purchasing Managers' Index (PMI) readings for the euro zone came in above economists' expectations and showed activity bouncing back to growth in July as more businesses reopened after lockdowns to curtail the spread of the coronavirus. Chinese yuan, a barometer of China-U.S. tensions, looked set for its worst week in nearly three months. It was last down 0.07% at 7.0177 per dollar in the offshore market CNH=EBS .
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Currency bid prices at 2:52PM (1852 GMT) Description
RIC
Last
U.S. Close Pct Change
YTD Pct
High Bid
Low Bid
Previous
Change
Session
Euro/Dollar
EUR=
$1.1639
$1.1594
+0.39%
+3.83%
+1.1647
+1.1582 Dollar/Yen
JPY=
105.9800
106.8500
-0.81%
-2.65%
+106.9000 +105.6900 Euro/Yen
EURJPY=
123.37
123.91
-0.44%
+1.16%
+123.9900 +122.8500 Dollar/Swiss
CHF=
0.9219
0.9253
-0.37%
-4.74%
+0.9260
+0.9216 Sterling/Dollar GBP=
1.2790
1.2739
+0.40%
-3.54%
+1.2803
+1.2719 Dollar/Canadian CAD=
1.3423
1.3408
+0.11%
+3.37%
+1.3444
+1.3377 Australian/Doll AUD=
0.7097
0.7097
+0.00%
+1.08%
+0.7124
+0.7065 ar
Euro/Swiss
EURCHF=
1.0732
1.0730
+0.02%
-1.12%
+1.0748
+1.0713 Euro/Sterling
EURGBP=
0.9098
0.9100
-0.02%
+7.62%
+0.9125
+0.9085 NZ
NZD=
0.6637
0.6633
+0.06%
-1.47%
+0.6653
+0.6616 Dollar/Dollar
Dollar/Norway
9.1689
9.2232
-0.59%
+4.45%
+9.2579
+9.1658 Euro/Norway
EURNOK=
10.6742
10.6968
-0.21%
+8.50%
+10.7470
+10.6693 Dollar/Sweden
SEK=
8.8416
8.8614
+0.12%
-5.41%
+8.8774
+8.8330 Euro/Sweden
EURSEK=
10.2930
10.2805
+0.12%
-1.68%
+10.3167
+10.2670
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https://tmsnrt.rs/3fXQNE2
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