August 31, 2018 / 3:18 PM / 2 months ago

FOREX-Dollar up for a second day on global trade tension

    * Euro falls on automobile tariff fears
    * Trump wants to push ahead with China tariffs -report
    * Emerging market currencies drop
    * Safe-havens such as Swiss franc, yen firm
    * Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh

 (Recasts, adds comment, U.S. data, FX table, updates prices,
changes byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Aug 31 (Reuters) - The dollar rose for a second
straight session on Friday on concerns about global trade
conflict, this time between the United States and the European
Union. 
    On the week, however, the dollar index, a gauge of the
greenback's value against six currencies was still down 0.3
percent. Over the last two weeks, the dollar has fallen 1.3
percent.
    The greenback had rallied late Thursday in a safe-haven move
after Bloomberg News reported that U.S. President Donald Trump
wanted to move ahead on a plan to impose tariffs on Chinese
imports worth $200 billion next week.
    That concern spilled over to the European Union after Trump
also said the European Union's proposal to eliminate auto
tariffs was "not good enough". 
    Shaun Osborne, chief FX strategist, at Scotiabank said the
markets have a "distinct risk-off look" the day after Trump's
comments.
    "President Trump's pronouncements on Bloomberg late
yesterday, which are critical of the...EU, willing to move on
Chinese tariff...are adding to market concerns broadly," he
said.
    By late morning, the dollar index was up 0.1 percent at
94.810 The euro was down 0.2 percent at $1.1644
after losing about 0.3 percent overnight when a rise in Italian
government bond yields put additional pressure on the currency.
    The Japanese yen and Swiss franc also rose on safe-haven
buying, with investors fearful about Europe's outlook. Trump has
threatened to impose tariffs on cars assembled by German
automakers Volkswagen AG, Daimler AG and BMW AG. 
    Trump also threatened in an interview with Bloomberg on
Thursday to withdraw from the World Trade Organization if "they
don't shape up." Those remarks dampened any
positive sentiment following negotiations over the North
American Free Trade Agreement (NAFTA).
    The cautious mood helped lift the yen against the dollar,
which slipped 0.1 percent at 110.86.
    The Swiss franc rose for the sixth successive session versus
the dollar, which fell 0.1 percent to 0.9670 franc.
    Emerging market currencies fell. The Argentinian peso
, the world's worst-performing currency this year, was
down about 1 percent against the dollar, which last traded at
38.00 pesos. On Thursday, the Argentine peso tumbled 10 percent,
bringing month-to-date losses to 27 percent.
    Argentina's central bank voted unanimously at an emergency
meeting on Thursday to raise its benchmark rate to 60 percent
from 45 percent. 

    ========================================================
    Currency bid prices at 10:54AM (1454 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1637        $1.1670     -0.28%         -3.00%      +1.1690     +1.1626
 Dollar/Yen       JPY=        110.8300       110.9600    -0.12%         -1.63%      +111.1100   +110.6900
 Euro/Yen         EURJPY=     128.97         129.50      -0.41%         -4.59%      +129.8400   +128.7600
 Dollar/Swiss     CHF=        0.9668         0.9689      -0.22%         -0.77%      +0.9695     +0.9654
 Sterling/Dollar  GBP=        1.2988         1.3008      -0.15%         -3.88%      +1.3028     +1.2961
 Dollar/Canadian  CAD=        1.3037         1.2979      +0.45%         +3.67%      +1.3070     +1.2973
 Australian/Doll  AUD=        0.7221         0.7263      -0.58%         -7.42%      +0.7267     +0.7208
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1252         1.1308      -0.50%         -3.74%      +1.1314     +1.1255
 Euro/Sterling    EURGBP=     0.8957         0.8970      -0.14%         +0.83%      +0.8988     +0.8959
 NZ Dollar/Dolar  NZD=        0.6628         0.6655      -0.41%         -6.46%      +0.6661     +0.6625
 Dollar/Norway    NOK=        8.3474         8.3423      +0.06%         +1.71%      +8.3600     +8.3172
 Euro/Norway      EURNOK=     9.7145         9.7359      -0.22%         -1.36%      +9.7425     +9.7037
 Dollar/Sweden    SEK=        9.1250         9.1165      -0.20%         +11.26%     +9.1323     +9.0947
 Euro/Sweden      EURSEK=     10.6192        10.6410     -0.20%         +7.93%      +10.6510    +10.6030
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Tom Finn in London; Editing by David Gregorio)
  
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