July 25, 2018 / 9:18 PM / 25 days ago

FOREX-Dollar drops as U.S.-EU agree to reduce tariffs

    * Euro gains as transatlantic trade tensions ease
    * Canadian dollar boosted on NAFTA hopes
    * Yuan pulls back from record 13-month weakness
    * GRAPHIC-World FX rates in 2018: tmsnrt.rs/2egbfVh

 (Adds latest U.S.-EU trade news, prices)
    By James Thorne
    New York, July 25 (Reuters) - The U.S. dollar weakened
against the euro on Wednesday after the United States and the
European Union agreed to deescalate a transatlantic trade
conflict, leaders from the two trading partners announced in a
joint statement in Washington.
    The dollar had strengthened in the past six months in part
due to deteriorating global trade relations. Rising U.S.
interest rates have also propped up demand for the greenback.
    "Everybody's trying to figure out if (Trump is) making deals
or not," said Axel Merk, president of the Merk Hard Currency
Fund in Palo Alto, California.
    The euro rose to $1.173 following the report, up 0.4
percent. Against a basket of six major currencies, which
is heavily weighted toward the euro, the dollar fell 0.44
percent during the session.
    The trading partners agreed to hold off on further tariffs
while negotiations were taking place. Trump and Juncker said
they were also working to eliminate tariffs and subsidies on
non-auto industrial goods.
    The dollar fell 0.24 percent to 110.92 yen. The Japanese
currency found some support early this week on expectations the
Bank of Japan might be a step closer to scaling back some of its
aggressive monetary stimulus.
    The Canadian dollar reached its highest level against the
U.S. dollar in six weeks after Canadian and Mexican policymakers
said they were optimistic about a deal on NAFTA.
The loonie was 0.88 percent higher at 1.3036 Canadian dollars to
the greenback.
    The offshore yuan strengthened 0.8 percent against
the dollar to 6.756 yuan as traders took profits after the
Chinese currency hit its weakest level since June 2017 on
Tuesday.
    Sterling rose 0.4 percent to $1.319 on increased odds for an
August rate hike and easing U.S.-EU trade tensions.

    
========================================================
    Currency bid prices at 4:50PM (2050 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1730        $1.1684     +0.39%         -2.22%      +1.1738     +1.1665
 Dollar/Yen       JPY=        110.9200       111.1900    -0.24%         -1.55%      +111.3800   +110.6700
 Euro/Yen         EURJPY=     130.11         129.92      +0.15%         -3.75%      +130.2600   +129.4200
 Dollar/Swiss     CHF=        0.9915         0.9935      -0.20%         +1.77%      +0.9949     +0.9908
 Sterling/Dollar  GBP=        1.3193         1.3143      +0.38%         -2.36%      +1.3200     +1.3134
 Dollar/Canadian  CAD=        1.3036         1.3152      -0.88%         +3.65%      +1.3165     +1.3024
 Australian/Doll  AUD=        0.7455         0.7420      +0.47%         -4.44%      +0.7464     +0.7393
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1632         1.1610      +0.19%         -0.49%      +1.1634     +1.1596
 Euro/Sterling    EURGBP=     0.8889         0.8890      -0.01%         +0.07%      +0.8902     +0.8873
 NZ Dollar/Dolar  NZD=        0.6838         0.6799      +0.57%         -3.50%      +0.6841     +0.6787
 Dollar/Norway    NOK=        8.1333         8.1763      -0.53%         -0.90%      +8.1884     +8.1241
 Euro/Norway      EURNOK=     9.5418         9.5552      -0.14%         -3.12%      +9.5657     +9.5368
 Dollar/Sweden    SEK=        8.7539         8.8149      -0.32%         +6.73%      +8.8313     +8.7506
 Euro/Sweden      EURSEK=     10.2680        10.3010     -0.32%         +4.36%      +10.3140    +10.2666
 
    

    
 (Reporting by James Thorne; Editing by Richard Chang)
  
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