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* Dollar index erases overnight losses, inches higher
* US to impose 10 pct tariffs on $200 bln worth of Chinese imports
* Chinese yuan offshore, Aussie slip amid higher trade tensions
* Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh
By Shinichi Saoshiro
TOKYO, Sept 18 (Reuters) - The dollar edged higher against its peers on Tuesday after the United States imposed a new round of tariffs on Chinese imports, exacerbating global trade woes and fuelling demand for the safe-haven greenback.
U.S. President Donald Trump said on Monday that he will impose 10 percent U.S. tariffs on about $200 billion worth of Chinese imports.
Trump said that if China takes retaliatory action against U.S. farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”
The dollar index against a basket of six major currencies edged up 0.1 percent to 94.607.
It had declined about 0.5 percent the previous day, weighed down as the pound and the euro advanced amid optimism over prospects for a Brexit deal with the European Union.
“The market has reacted to the latest U.S-China tariff news by pushing the dollar up against currencies like the euro, pound and Australian dollar,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
“In addition, emerging currencies have also come under pressure, giving the dollar further support. Of immediate concern to the market is how China responds to the tariffs.”
China’s yuan was 0.25 percent lower at 6.8874 per dollar in offshore trade.
The dollar dipped 0.15 percent to 111.69 yen, another safe-haven currency that draws demand in times of market tensions and risk aversion.
The Australian dollar, seen as a proxy to China-related trades as well as a barometer of broader risk sentiment, fell 0.4 percent to $0.7148 to erase the previous day’s gains.
The euro was 0.15 percent lower at $1.1668 after rising 0.5 percent the previous day.
The pound dipped 0.1 percent to $1.3147.
Sterling had gained 0.7 percent on Monday, hitting a six-week high of $1.3165, helped by reports of progress on the Irish border question, an obstacle to Brexit that diplomats will try to overcome this week at a European Union summit.
Emerging market currencies including the Turkish lira , South African rand and the Mexican peso were all a shade lower early on Monday. (Reporting by Shinichi Saoshiro; Editing by Richard Borsuk)