Dollar falls on hopes for U.S.-China trade talk

* U.S. said to propose new round of trade talks with China
* Euro, pound rise on Brexit hopes before central bank
* Fed's Beige Book signals ongoing U.S. growth as U.S. PPI
* EM currencies rebound; Indian rupee tumbles to record low
* Graphic: World FX rates in 2018

(Updates market action, adds quotes)
By Richard Leong
NEW YORK, Sept 12 (Reuters) - The dollar fell against a
basket of other currencies on Wednesday as investors pared
safe-haven holdings of the greenback following a report that
senior U.S. officials were seeking to jumpstart trade talks with
The U.S. currency also came under pressure from a rebound in
the euro and sterling after pro-Brexit lawmakers in British
Prime Minister Theresa May's party publicly pledged support for
her despite disagreeing with her Brexit proposals.
"We have a lot of Brexit headlines in recent days which are
conciliatory," said Paresh Upadhyaya, director of currency
strategy at Amundi Pioneer Investments in Boston. "The dollar
was also pressured by the news of a U.S. proposal to renew trade
talks with China."
Senior U.S. officials led by Treasury Secretary Steven
Mnuchin sent invitations to their counterparts in Beijing
proposing another round of bilateral trade talks, the Wall
Street Journal reported on Wednesday.
Anxiety about the escalating U.S.-China trade conflict has
hurt the yuan and emerging market currencies as U.S.
President Donald Trump has threatened to impose more tariffs on
Chinese imports in a bid to address a record U.S. trade deficit
with China.
An index that tracks the greenback against the euro, yen,
sterling and three other currencies was down0.49 percent
at 94.787.
Sterling was up 0.18 percent at
$1.3056, not far below a five-week high of $1.3087 set on
The euro was up 0.26 percent at $1.16350 and was
little changed at 89.05 pence.

The euro climbed ahead of an European Central Bank meeting.
Traders sought to exit some bearish bets on the single currency,
which fell earlier on Wednesday on reports that ECB policymakers
will trim their growth forecasts at their meeting on Thursday,
analysts said.
The ECB and the Bank of England, which will also hold a
policy meeting on Thursday, are widely expected to leave
interest rates unchanged.
The dollar's weakness helped emerging markets recover from
their earlier losses when the Indian rupee hit an
all-time low at 72.91 per U.S. dollar.
Earlier Wednesday, the U.S. Labor Department said the
producer price index unexpectedly fell 0.1 percent in August,
marking its first decline in 1-1/2 years.
The Federal Reserve's latest Beige Book showed the U.S.
economy grew at a moderate pace in recent weeks even as
businesses worried about international trade tensions.

Fed policymakers are widely to raise short-term borrowing
costs at their upcoming meeting on Sept. 25-26.
Currency bid prices at 2:43PM (1843 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Euro/Dollar EUR= $1.1633 $1.1605 +0.24% -3.03% +1.1649 +1.1571
Dollar/Yen JPY= 111.2200 111.6200 -0.36% -1.29% +111.6400 +111.1200
Euro/Yen EURJPY= 129.40 129.53 -0.10% -4.28% +129.8000 +128.9400
Dollar/Swiss CHF= 0.9700 0.9720 -0.21% -0.44% +0.9749 +0.9697
Sterling/Dollar GBP= 1.3055 1.3033 +0.17% -3.38% +1.3079 +1.2981
Dollar/Canadian CAD= 1.2989 1.3065 -0.58% +3.28% +1.3078 +1.2980
Australian/Doll AUD= 0.7177 0.7122 +0.77% -8.00% +0.7181 +0.7094
Euro/Swiss EURCHF= 1.1286 1.1282 +0.04% -3.45% +1.1311 +1.1269
Euro/Sterling EURGBP= 0.8912 0.8903 +0.10% +0.33% +0.8936 +0.8888
NZ NZD= 0.6562 0.6524 +0.58% -7.39% +0.6564 +0.6503
Dollar/Norway NOK= 8.2500 8.3182 -0.82% +0.52% +8.3471 +8.2272
Euro/Norway EURNOK= 9.5998 9.6565 -0.59% -2.53% +9.6640 +9.5823
Dollar/Sweden SEK= 8.9782 9.0393 -0.48% +9.47% +9.0689 +8.9609
Euro/Sweden EURSEK= 10.4450 10.4950 -0.48% +6.16% +10.5010 +10.4350

(Reporting by Saikat Chatterjee in LONDON; additional reporting
by Daniel Leussnik in TOKYO; Editing by Larry King and Alison

First Published: 2018-09-12 03:24:10
Updated 2018-09-12 21:11:45

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