November 23, 2018 / 7:43 PM / 6 months ago

FOREX-Dollar posts largest weekly gain in one month as oil slumps

    * Euro sinks after PMI surveys disappoint
    * Yen, Swiss franc rise as risk aversion gains
    * Oil price drop boosts dollar, yen, Swiss franc
    * Graphic: World FX rates in 2018

 (Adds comment, updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Nov 23 (Reuters) - The dollar rose on Friday,
posting its biggest weekly percentage increase in a month, as
risk appetite declined and investors sought the currency's
safety following a steep drop in oil prices that suggested
global growth is slowing.
    The safe-haven yen and Swiss franc also advanced.
    The drop in oil prices fueled a risk-off wave across the
board. U.S. crude futures were last down nearly 8 percent
on the day.
    "Risk aversion has been the main driver all week, with oil
prices driving market sentiment," said Shaun Osborne, chief FX
strategist at Scotiabank in Toronto.
    "The dollar is better overall for the week because of the
risk-off stance, despite a fairly significant pricing out of
2019 rate hike expectations," he added.
    In afternoon trading, the dollar index was up 0.3
percent at 96.959. It has gained in five of the last six
    The dollar's near-term outlook, however, has dimmed a little
bit as some of the recent U.S. economic numbers have come in
weaker than expected and several Federal Reserve officials have
struck a cautious tone on the economy. All told, investors
increasingly believe the Fed may be nearing the end of its
tightening cycle.
    That said, Jane Foley, senior FX strategist at Rabobank in
London, believes the dollar will still find decent support as
investors are likely to remain cautious on emerging market
    "The huge liquidity associated with the greenback, the fact
that there is no real default risk on U.S. Treasuries, and the
credibility of the U.S. legal system are enough to endow the
U.S. dollar with sufficient safe-haven appeal for many
investors," Foley added.
    The euro, on the other, fell to a one-week low on signs
economic growth could be slowing across the euro zone, with
worries about Brexit and Italy's budget negotiations also
weighing on the single currency.
    Business growth in the euro zone slowed much more quickly
than expected this month, a Purchasing Managers Index survey
showed. After German private-sector growth slowed to its lowest
level in nearly four years, the euro dropped into negative
territory and was last down 0.7 percent at $1.1329. 
    In other currency trading, the yen rose broadly on fears
about the implications of lower oil prices on global growth.
    The dollar slipped 0.1 percent against the yen to 112.86 yen
, while the euro tumbled 0.7 percent to 127.86 yen
    The Australian dollar, often considered a gauge for
global risk appetite, weakened 0.4 percent to U$0.7225.
    Analysts expect the Aussie to remain subdued ahead of a
meeting between U.S. and Chinese leaders at a G20 meeting in
Argentina at the end of the month, with markets watching for any
sign of whether they may agree to de-escalate their trade war.  
    Currency bid prices at 2:30PM (1930 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1326        $1.1407     -0.71%         -5.59%      +1.1421     +1.1327
 Dollar/Yen       JPY=        112.8400       112.9300    -0.08%         +0.15%      +113.0100   +112.6700
 Euro/Yen         EURJPY=     127.85         128.77      -0.71%         -5.42%      +128.9300   +127.8500
 Dollar/Swiss     CHF=        0.9974         0.9943      +0.31%         +2.37%      +0.9980     +0.9935
 Sterling/Dollar  GBP=        1.2810         1.2876      -0.51%         -5.20%      +1.2882     +1.2800
 Dollar/Canadian  CAD=        1.3229         1.3188      +0.31%         +5.18%      +1.3258     +1.3184
 Australian/Doll  AUD=        0.7227         0.7254      -0.37%         -7.36%      +0.7257     +0.7219
 Euro/Swiss       EURCHF=     1.1302         1.1342      -0.35%         -3.34%      +1.1354     +1.1301
 Euro/Sterling    EURGBP=     0.8839         0.8852      -0.15%         -0.50%      +0.8877     +0.8839
 NZ               NZD=        0.6771         0.6811      -0.59%         -4.45%      +0.6819     +0.6768
 Dollar/Norway    NOK=        8.6018         8.5300      +0.84%         +4.81%      +8.6052     +8.5279
 Euro/Norway      EURNOK=     9.7478         9.7313      +0.17%         -1.02%      +9.7547     +9.7210
 Dollar/Sweden    SEK=        9.0944         9.0394      -0.05%         +10.88%     +9.0977     +9.0239
 Euro/Sweden      EURSEK=     10.3037        10.3090     -0.05%         +4.72%      +10.3162    +10.2930
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Tom Finn in London; Editing by Dan Grebler and Susan Thomas)
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