November 16, 2018 / 8:28 PM / 6 months ago

REFILE-FOREX-Dollar falls as Fed officials ring note of caution, pound bounces

 (Adds dropped word in headline)
    * Fed's Clarida, Kaplan warn of risk of slowing global
    * Dollar hits one-week low vs euro, two-week trough vs yen
    * Sterling recovers as key Brexiteers back UK PM May's plan 
    * Graphic: World FX rates in 2018

    By Richard Leong
    NEW YORK, Nov 16 (Reuters) - The dollar fell broadly on
Friday in the wake of cautious comments from two U.S. Federal
Reserve officials about global economic growth, while sterling
rose following losses tied to fears about a Brexit deal.
    The greenback fell to one-week lows versus the euro and a
two-week trough against the yen following comments from Fed Vice
Chair Richard Clarida, who told CNBC television he saw some
evidence that global growth was cooling.
    Clarida also noted key U.S. short-term borrowing rates are
close to neutral and said being at neutral "makes sense."
    Traders perceived his comments to mean the No. 2 Fed
official may be open for the Fed to pause its rate-hike campaign
sooner than previously thought.
    "You have seen a dovish tilt from some Fed officials. That
put pressure on the dollar," said Chuck Tomes, senior investment
analyst at Manulife Asset Management in Boston.
    Separately, Dallas Federal Reserve President Robert Kaplan
said on Fox Business that global growth will be a bit of a
headwind, which may spread to the United States.
    Clarida and Kaplan's remarks spurred selling in the dollar,
which fell 0.7 percent against the euro at $1.141.
    Against the yen, the greenback was down 0.7
percent at 112.82 yen.
    Chicago Fed President Charles Evans acknowledged some
economic risks ahead but he also raised the probability the Fed
could raise rates above what would be neutral if U.S. data come
in stronger than forecast.
    The dollar also weakened against sterling, reversing some of
Thursday's gains.
    The pound briefly recovered against the euro following its
worst day versus the single currency in about 25 months, as U.K.
Prime Minister Theresa May clinched backing from some key Brexit
supporters with her draft plan for Britain to leave the European
Union in March.
    A string of cabinet ministers quit on Thursday in protest
over the terms in May's Brexit proposal. The resignations sent
the pound reeling.
    Sterling was last up 0.42 percent versus the dollar
at $1.2829 but was down 0.31 percent versus the euro
at 88.945 pence.
    The euro was also bolstered by hopes that Italian Prime
Minister Giuseppe Conte was looking to work with the EU over his
government's 2019 budget, which has been rejected by Brussels.  
    Meanwhile, currency traders are monitoring signs that
Washington and Beijing are seeking to de-escalate their trade
    U.S. President Trump said he might not impose more tariffs
on Chinese imports if China comes up with terms that he and
Beijing could agree on.
    The yuan in offshore trading edged up 0.13 at 6.92
per dollar. 
    Currency bid prices at 3:06PM (2006 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1407        $1.1326     +0.72%         -4.90%      +1.1421     +1.1321
 Dollar/Yen       JPY=        112.8200       113.6200    -0.70%         +0.12%      +113.6400   +112.6500
 Euro/Yen         EURJPY=     128.70         128.74      -0.03%         -4.79%      +128.8900   +128.1500
 Dollar/Swiss     CHF=        0.9997         1.0069      -0.72%         +2.60%      +1.0087     +0.9992
 Sterling/Dollar  GBP=        1.2823         1.2774      +0.38%         -5.10%      +1.2877     +1.2761
 Dollar/Canadian  CAD=        1.3155         1.3175      -0.15%         +4.59%      +1.3186     +1.3127
 Australian/Doll  AUD=        0.7327         0.7276      +0.70%         -6.08%      +0.7334     +0.7251
 Euro/Swiss       EURCHF=     1.1406         1.1405      +0.01%         -2.42%      +1.1434     +1.1399
 Euro/Sterling    EURGBP=     0.8895         0.8866      +0.33%         +0.14%      +0.8904     +0.8826
 NZ Dollar/Dolar  NZD=        0.6878         0.6830      +0.70%         -2.94%      +0.6881     +0.6800
 Dollar/Norway    NOK=        8.4457         8.4878      -0.50%         +2.91%      +8.4949     +8.4259
 Euro/Norway      EURNOK=     9.6380         9.6173      +0.22%         -2.14%      +9.6439     +9.6033
 Dollar/Sweden    SEK=        9.0110         9.0624      +0.11%         +9.87%      +9.0710     +8.9981
 Euro/Sweden      EURSEK=     10.2810        10.2700     +0.11%         +4.49%      +10.2885    +10.2598

 (Additional reporting by Tom Finn, Tommy Wilkes in London; 
Editing by Dan Grebler and Chizu Nomiyama)
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