Dollar falls on U.S.-China trade hopes, Swedish crown tumbles
* Dollar loses safe-haven appeal on U.S-China trade optimism
* Swedish crown slumps as inflation data disappoints
* Sterling gains on upbeat UK wage growth data
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates to late afternoon U.S. market action)
By Richard Leong
NEW YORK, Feb 19 (Reuters) - The dollar slipped against a
basket of other currencies on Tuesday as traders scaled back
their safe-haven greenback holdings on optimism that a fresh
round of talks between China and the United States would help
resolve their trade conflict.
The dollar index hit a near-two-month peak on Friday after
last week's negotiations in Beijing failed to result in a deal,
although officials from both sides said the talks had produced
progress on contentious issues.
Bloomberg TV reported on Monday that the White House is
pushing for a pledge from China that it will not devalue its
currency as a part of a trade deal.
"We are hoping to hear more positive news on trade," said
Dean Popplewell, chief currency strategist at Oanda in Toronto.
"The dollar should come under pressure as it loses some
The dollar index, which tracks the greenback against six
other major currencies, was down 0.42 percent at 96.5. On
Friday, it hit 97.368, the highest since Dec. 17.
The yuan hit a two-week peak versus the greenback at 6.7425
in offshore trading.
U.S. financial markets were closed on Monday for the
Presidents Day holiday.
Among other major currencies, the Swedish crown tumbled
after weak inflation data spurred sales of the currency and a
paring of bets that interest rates would rise this year.
Last week, the crown rose after Sweden's central bank said
it would stick to its plan to raise rates in the second half of
The currency plunged more than 1 percent to a two-year low
against the dollar at 9.4180, after a report showed
inflation slowed in January.
Against the euro, it was headed for its biggest daily
decline in more than 15 months. It touched 10.621,
its weakest since September.
The euro appreciated against the dollar on trade optimism.
It reversed earlier losses after data showed Italian industrial
orders dropped 5.3 percent in December from a year earlier.
Euro zone bond yields, notably those of German bunds, fell
amid the cloudy European economic outlook, weighing on the euro.
When European Central Bank policymakers meet on March 7, they
are expected to lower growth and inflation projections.
The euro was up 0.25 percent at $1.13410, holding
above a three-month low of $1.1234 set last week.
The single currency, however, fell against the British pound
as data showed domestic workers' salaries grew at the fastest
pace in a decade in late 2018.
The euro was 0.83 percent lower at 86.80 pence, while the
pound was up 1.13 percent at $1.307.
Sterling's gains were limited ahead of British Prime
Minister Theresa May's meeting with the EU to find a way to get
their Brexit deal through the UK Parliament.
Currency bid prices at 3:23PM (2023 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Euro/Dollar EUR= $1.1339 $1.1308 +0.27% -1.13% +1.1357 +1.1275
Dollar/Yen JPY= 110.6400 110.6000 +0.04% +0.34% +110.8200 +110.4600
Euro/Yen EURJPY= 125.47 125.07 +0.32% -0.59% +125.5300 +124.7700
Dollar/Swiss CHF= 1.0007 1.0041 -0.34% +1.97% +1.0060 +1.0002
Sterling/Dollar GBP= 1.3069 1.2921 +1.15% +2.45% +1.3073 +1.2896
Dollar/Canadian CAD= 1.3206 1.3239 -0.25% -3.16% +1.3282 +1.3205
Australian/Doll AUD= 0.7169 0.7130 +0.55% +1.70% +0.7173 +0.7104
Euro/Swiss EURCHF= 1.1351 1.1361 -0.09% +0.86% +1.1373 +1.1334
Euro/Sterling EURGBP= 0.8676 0.8748 -0.82% -3.43% +0.8762 +0.8672
NZ NZD= 0.6880 0.6846 +0.50% +2.43% +0.6887 +0.6816
Dollar/Norway NOK= 8.5666 8.6077 -0.48% -0.83% +8.6477 +8.5596
Euro/Norway EURNOK= 9.7153 9.7359 -0.21% -1.95% +9.7676 +9.7135
Dollar/Sweden SEK= 9.3044 9.2524 +0.83% +3.80% +9.4170 +9.2509
Euro/Sweden EURSEK= 10.5553 10.4680 +0.83% +2.84% +10.6213 +10.4623
(Additional reporting by Tommy Finn, Tommy Wilkes in LONDON;
Editing by Larry King, Steve Orlofsky and Dan Grebler)
First Published: 2019-02-19 02:26:40
Updated 2019-02-19 22:33:48
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