News: FOREX-Dollar, yen fall as safe-haven allure eases after tariff delay

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    • 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: http://tmsnrt.rs/2egbfVh

    (Adds new comment, updates prices)

    The safe-haven dollar and yen slid 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.

    Following news on the tariff delay, the yen dropped to a two-month low against the dollar and euro, and global equity markets advanced along with currencies that do well in risk-tolerant environments such as the Australian and New Zealand dollars.

    In emerging markets, the South African rand ZAR= led all gainers versus the greenback, rising 1.4 percent to 13.8495 rand per U.S. dollar.

    "This speaks to the overall 'risk-loving' disposition of global markets in the wake of the White House's weekend decision to delay tariff increases," said Stephen Gallo, European head of FX strategy at BMO Capital Markets in London.

    "Fundamentals are meaningless," he added. 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."

    In afternoon trading, the dollar index, which measures the currency's value against a basket of six currencies, fell 0.1 percent to 96.429 .DXY .

    The yen was also weaker, sliding to a two-month low verus the euro, which was last at 126.255 yen, EURJPY= , up 0.7 percent. The Japanese currency also fell against the dollar, which last changed hands at 111.11 yen, up 0.4 percent JPY= .

    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 CNH= .

    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 0.6 percent to US$0.7175 AUD= . The New Zealand dollar gained 0.6 percent to US$0.6880 NZD= .

    The euro EUR= also gained against a weaker dollar, adding 0.2 percent to $1.1363, keeping it within recent trading ranges.

      ======================================================== 
      Currency bid prices at 1503 EST (2003 GMT): 
    
     Description	  RIC	  Last	  U.S. Close  Pct	  YTD Pct   High Bid   Low Bid 
    									 Previous	Change   Change				
    									 Session									
     Euro/Dollar	  EUR=	 $1.1360   $1.1341	 +0.17	-0.95	 +1.1368	+1.1325 
     Dollar/Yen	   JPY=	 111.1100  110.6800	+0.39	+0.77	 +111.2300  +110.5900 
     Euro/Yen		 EURJPY=  126.26	125.40	  +0.69	+0.03	 +126.3000  +125.3900 
     Dollar/Swiss	 CHF=	 1.0002	1.0001	  +0.01	+1.92	 +1.0011	+0.9984 
     Sterling/Dollar  GBP=	 1.3099	1.3052	  +0.36	+2.68	 +1.3104	+1.3042 
     Dollar/Canadian  CAD=	 1.3183	1.3136	  +0.36	-3.33	 +1.3197	+1.3113 
     Australian/Doll  AUD=	 0.7176	0.7127	  +0.69	+1.79	 +0.7184	+0.7125 
     ar																			 
    
     Euro/Swiss	   EURCHF=  1.1367	1.1338	  +0.26	+1.00	 +1.1369	+1.1330 
     Euro/Sterling	EURGBP=  0.8673	0.8680	  -0.08	-3.45	 +0.8699	+0.8663 
     NZ			   NZD=	 0.6885	0.6843	  +0.61	+2.50	 +0.6901	+0.6827 
     Dollar/DolLar																  
    
     Dollar/Norway	NOK=	 8.5955	8.6043	  -0.10	-0.50	 +8.6161	+8.5658 
     Euro/Norway	  EURNOK=  9.7681	9.7578	  +0.11	-1.39	 +9.7735	+9.7345 
     Dollar/Sweden	SEK=	 9.3084	9.3435	  -0.20	+3.84	 +9.3462	+9.3014 
     Euro/Sweden	  EURSEK=  10.5780   10.5990	 -0.20	+3.06	 +10.5980   +10.5580 
    	<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
    GRAPHIC-World FX rates in 2019:	 http://tmsnrt.rs/2egbfVh 
    
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