February 25, 2019 / 3:33 PM / 25 days ago

FOREX-Dollar, yen down after U.S. delays tariffs on China's goods

    * Trump says to hold summit with China to sign trade deal
    * Chinese yuan, Aussie, NZ dollar gain in 'risk-on' momentum
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Recasts, adds comment, FX table, changes dateline; previous
LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Feb 25 (Reuters) - The safe-haven dollar and yen
slipped on Monday as risk appetite increased after U.S.
President Donald Trump said he would delay a planned hike in
tariffs on Chinese imports, suggesting trade negotiations
between the two countries have made significant progress.
    The U.S. deadline set earlier for imposing higher tariffs on
Chinese goods was March 1. 
    Global equity markets rose on the news, along with
currencies that do well in risk-tolerant environments, such as
the Australian and New Zealand dollars.
    Trump said on Monday he would hold a summit with China to
sign any final trade deal and would meet with Chinese President
Xi Jinping at his Mar-a-Lago estate in Florida.
    Mazen Issa, senior FX strategist at TD Securities in New
York, said the "stand down" posture on the trade talks suggested
that a "more substantive deal may be in the works that could
address structural issues related to intellectual property theft
and forced technology transfers."
    That has boosted risk sentiment, Issa said, and weighed on
safe-haven currencies such as the dollar and yen.
    In mid-morning trading, the dollar index, which measures the
currency's value against a basket of six currencies, fell 0.1
percent to 96.431 as investors bought currencies
considered riskier. 
    The yen was also weaker, pushing the dollar up 0.1 percent
at 110.82 yen.
    China's yuan, meanwhile, touched a seven-month high while   
Chinese equities surged as investors and European shares also
performed well.
    The offshore yuan rose as high as 6.6737 per dollar to touch
its strongest since mid-July and was up 0.3 percent at 6.68
.
    China's yuan has strengthened 2.7 percent against the dollar
in 2019, reversing some of last year's 5.5 percent loss.
    The Australian dollar, seen as a proxy for China risk
because of Australia's dependence on Chinese demand for its
exports, rose 0.7 percent to US$0.7176. The New Zealand
dollar gained 0.6 percent to US$0.6894.
    The euro also gained against a weaker dollar, adding
0.1 percent to $1.1353, keeping it within recent trading ranges.
    "You couldn't get a more 'risk on' ranking of G10 currencies
than we have this morning," said Kit Juckes, Societe Generale's
foreign exchange analyst, citing gains for the Australian and
New Zealand dollars and the Swedish and Norwegian crowns
.
     Sterling held below $1.31, up 0.1 percent, as
traders considered whether the British government might delay
Brexit should Prime Minister Theresa May fail to secure support
for her withdrawal agreement.
    
    ========================================================
    Currency bid prices at 10:12AM (1512 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1354        $1.1341     +0.11%         -1.00%      +1.1368     +1.1325
 Dollar/Yen       JPY=        110.8100       110.6800    +0.12%         +0.50%      +110.8500   +110.5900
 Euro/Yen         EURJPY=     125.83         125.40      +0.34%         -0.31%      +125.8900   +125.3900
 Dollar/Swiss     CHF=        1.0003         1.0001      +0.02%         +1.93%      +1.0009     +0.9984
 Sterling/Dollar  GBP=        1.3069         1.3052      +0.13%         +2.45%      +1.3098     +1.3042
 Dollar/Canadian  CAD=        1.3166         1.3136      +0.23%         -3.45%      +1.3173     +1.3113
 Australian/Doll  AUD=        0.7172         0.7127      +0.63%         +1.74%      +0.7184     +0.7125
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1359         1.1338      +0.19%         +0.93%      +1.1362     +1.1330
 Euro/Sterling    EURGBP=     0.8686         0.8680      +0.07%         -3.32%      +0.8699     +0.8669
 NZ               NZD=        0.6884         0.6843      +0.60%         +2.49%      +0.6901     +0.6827
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.5900         8.6043      -0.17%         -0.56%      +8.6161     +8.5658
 Euro/Norway      EURNOK=     9.7557         9.7578      -0.02%         -1.52%      +9.7663     +9.7345
 Dollar/Sweden    SEK=        9.3162         9.3435      -0.19%         +3.93%      +9.3462     +9.3014
 Euro/Sweden      EURSEK=     10.5790        10.5990     -0.19%         +3.07%      +10.5980    +10.5580
 
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Tommy Wilkes in London; Editing by Dan Grebler)
  
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