Euro falls as risk sentiment sours Yen, Swiss franc both gain on...

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    • Euro falls as risk sentiment sours
    • Yen, Swiss franc both gain on safe-haven bids
    • Tech share slide, Fed caution had earlier hobbled dollar
    • Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh

    (Recasts, adds comment, FX table, updates prices, changes byline, dateline; previous LONDON)

    The dollar rallied from a two-week low on Tuesday as a sell-off in world stock markets spurred safe-haven bids and investors worried about slowing global growth.

    Other safe-haven currencies such as the yen and Swiss franc gained as well.

    "Dovish comments from the Fed that the world economy may be cooling off has dented investors' sentiment," said Viash Sreemuntoo, corporate trader at online FX broker XE.

    Earlier, cautious comments overnight by Federal Reserve officials about the global economic outlook knocked the dollar to two-week troughs as it suggested the Fed could slow the pace of raising interest rates or that the tightening cycle is ending.

    In midmorning trading, the dollar index, a measure of its value against a basket of six major currencies, rose 0.3 percent to 96.510 .DXY , off its weakest level since Nov. 7.

    "With investors holding significant long U.S. dollar exposure, especially versus the yen, we think the dollar remains at risk of weakening further if the market's doubts about the Fed outlook are sustained – or increase further – especially as the broader dollar lift associated with seasonal demand around this time of year is typically at or close to a peak by now," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto.

    The euro also gave up its gains, spooked by a slide in European equities. Italian bank shares hit a two-year low and Italian bonds sold off again amid a continuing confrontation with the European Union over Rome's budget plans.

    Europe's single currency was last down 0.4 percent at $1.1401 EUR= , off a two-week high earlier.

    Persisting worries about the China-U.S. trade conflict and Brexit negotiations also kept investors jittery.

    With investor nerves high, the yen added 0.1 percent to 112.48 JPY= .

    U.S. 10-year Treasury yields US10YT=RR pulled back, removing some support for the greenback.

    The dollar was also weighed down by weak U.S. data.

    "For the U.S. equity market to stabilize, either the rest of the world will have to show better growth or the Fed will have to moderate its stance," Hans Redeker, global head of FX strategy, at Morgan Stanley, wrote in a client note.

    "Both outcomes are U.S. dollar-negative and explain why rising U.S. equity volatility has failed to spill over into emerging markets."

    Sterling was slightly lower against the dollar GBP= , but was firmer against the euro EURGBP= as Prime Minister Theresa May heads to Brussels for more Brexit talks.

    In the cryptocurrency market, bitcoin BTC= lost another 10 percent to below $4,500 as sentiment soured further.

    Currency bid prices at 10:01AM (1501 GMT)

     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
    											  Session											
     Euro/Dollar	  EUR=		$1.1397		$1.1451	 -0.47%		 -4.99%	  +1.1472	 +1.1394 
     Dollar/Yen	   JPY=		112.3900	   112.5400	-0.13%		 -0.27%	  +112.6600   +112.3100 
     Euro/Yen		 EURJPY=	 128.15		 128.91	  -0.59%		 -5.22%	  +129.0200   +128.1300 
     Dollar/Swiss	 CHF=		0.9932		 0.9935	  -0.03%		 +1.94%	  +0.9943	 +0.9910 
     Sterling/Dollar  GBP=		1.2831		 1.2849	  -0.14%		 -5.04%	  +1.2882	 +1.2824 
     Dollar/Canadian  CAD=		1.3245		 1.3170	  +0.57%		 +5.31%	  +1.3246	 +1.3155 
     Australian/Doll  AUD=		0.7251		 0.7293	  -0.58%		 -7.05%	  +0.7300	 +0.7252 
     ar																							  
    
     Euro/Swiss	   EURCHF=	 1.1323		 1.1378	  -0.48%		 -3.15%	  +1.1382	 +1.1320 
     Euro/Sterling	EURGBP=	 0.8880		 0.8912	  -0.36%		 -0.03%	  +0.8922	 +0.8876 
     NZ			   NZD=		0.6814		 0.6836	  -0.32%		 -3.84%	  +0.6869	 +0.6816 
     Dollar/DolLar																				   
    
     Dollar/Norway	NOK=		8.5497		 8.4756	  +0.87%		 +4.15%	  +8.5504	 +8.4558 
     Euro/Norway	  EURNOK=	 9.7467		 9.7087	  +0.39%		 -1.03%	  +9.7477	 +9.6966 
     Dollar/Sweden	SEK=		9.0617		 9.0012	  +0.19%		 +10.47%	 +9.0618	 +8.9873 
     Euro/Sweden	  EURSEK=	 10.3290		10.3097	 +0.19%		 +4.98%	  +10.3300	+10.3030 
    	<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
    GRAPHIC-World FX rates in 2018	2018 http://tmsnrt.rs/2egbfVh 
    
    	^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>                    
 
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