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Additional to that . . .
. . . The most likely source of Fanny in your relative's case would be a Latvian or Yiddish version of Frances, or a Latvian or Yiddish name which resembles Fanny or Frances. I had a quick look and the only obvious condender was Freyde (click hyperlink for details), however I have no idea whether this was ever popular in Latvia - information on Latvian names is elusive unless you speak Latvian!
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Thanks for the suggestion. I've since found Fiega which is Yiddish and a strong possibility. Also thanks to Miranda. I never nade the connection between Fanny and Stephanie! It's obvious now that you point it out!
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