(Updates prices, adds comments; changes byline, dateline, pvs
* Euro rises from 9-day low against dollar
* Deutsche Bank shares up after hitting record lows Thursday
* Dollar hits 9-day high versus Swiss franc, gains on yen
* Yen on track to post three straight quarters of gains
By Sam Forgione
NEW YORK, Sept 30 The euro erased losses against
the dollar after hitting a nine-day low on Friday on reduced
concerns surrounding Deutsche Bank's health, while the greater
calm over Germany's biggest lender also pressured the safe-haven
yen and Swiss franc.
Deutsche Bank's U.S.-listed shares were last up about
6.8 percent after touching record lows on Thursday. The
immediate cause of the Deutsche crisis is a fine, disputed by
the bank, of up to $14 billion by the U.S. Department of Justice
over its sale of mortgage-backed securities.
Speculation that the fine would be reduced helped the euro
pare losses after the currency fell to $1.1153 around the start
of the U.S. trading session. Soothed concerns surrounding
Deutsche Bank also helped the dollar hit a nine-day high against
the safe-haven franc of 0.9752.
"There seems to be reduced pessimism at least for the
outlook for Deutsche," said Shaun Osborne, chief FX strategist,
at Scotiabank in Toronto. He said the euro was finding strong
demand between $1.1150 and $1.1160.
The dollar was last up 0.29 percent against the yen at
101.30 yen after hitting a session high of 101.75 yen.
"Risk appetite is certainly more constructive now," Osborne
The Japanese currency still looked set to gain about 1.9
percent against the dollar for the quarter to clinch its third
straight quarterly gain.
The dollar index, which measures the greenback
against a basket of six major currencies, was last little
changed at 95.505.
While the euro recovered, it was still failing to rally
partly on fears that Deutsche Bank's woes could resurface. The
bank admitted it had an image problem with investors on
One large hedge fund in Asia had pulled out its collateral
from Deutsche amounting to $50 million in the last two days,
while another fund with a "smallish amount" with the bank was
monitoring the situation closely and had not pulled out, people
familiar with the matter told Reuters on Friday.
"Deutsche Bank has serious issues," said Joseph Trevisani,
chief market strategist at WorldWideMarkets in Woodcliff Lake,
China's yuan was steady at 6.6689 to the dollar. The
currency will formally join the U.S. dollar, the euro, the
Japanese yen and the British pound as a global reserve currency
(Reporting by Sam Forgione; Editing by Paul Simao)