March 6, 2018 / 4:16 PM / 6 months ago

FOREX-Dollar falls as Korea talk offsets trade worries

    * Trade war concerns limit appetite for riskier currencies
    * Greenback hit weakest level vs Korean won since late
January
    * Euro rebounds to 2-week peak vs dollar after Sunday
elections

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, March 6 (Reuters) - The dollar slipped to a
one-week low on Tuesday against a basket of currencies as
traders piled back into riskier currencies after an agreement
between North and South Korea to hold direct talks.
    The dollar had already been weakening on worries about a
trade war due to U.S. President Donald Trump's proposed tariffs
last week on imported steel and aluminium.
    The currency, seen as a safe-haven against risk in recent
months, fell further after news of the North and South Korea
talks as investors bought the Australian and New Zealand dollars
and emerging market currencies.
    "It's too early to wholeheartedly buy these currencies
because of the chances of escalating trade tension between U.S.
and its trading partners," said Omer Esiner, chief market
analyst at Commonwealth Foreign Exchange in Washington.  
    North and South Korea, still technically at war but enjoying
easing tension since the Winter Olympics in the South last
month, will hold their first summit in more than a decade next
month, South Korea said on Tuesday.
    It also said North Korea is willing to hold talks with the
United States on denuclearization and will suspend nuclear tests
while those talks are under way.
    This offset worries about Trump's proposed levies, which has
prompted protests from Europe, Canada and other countries. 
    At 11:09 a.m. (1609 GMT), the dollar fell 0.557 points or
0.62 percent, against a group of currencies to 89.523.
    It also touched its weakest level against the South Korean
won since Jan. 25. It was last down 1.38 percent, at
1,061.81 won.
    Among higher-yielding currencies, the New Zealand dollar was
up as much as 1.2 percent on the day and the Aussie up
more than 1 percent.
    Against the yen - traditionally seen as a safe haven - the
dollar had slipped as low as 105.86 yen, not far from the
16-month low it reached late last week after Trump said he would
impose tariffs of 25 percent on steel imports and 10 percent on
aluminium.  The yen was last down 0.21 percent, at 105.97 yen. 
    The euro rebounded to a two-week high of $1.2414 on
Tuesday after a selloff on Monday following elections in Italy
and Germany.
========================================================
    Currency bid prices at 11:10AM (1610 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.2417        $1.2335     +0.66%         +3.51%      +1.2420     +1.2330
 Dollar/Yen       JPY=        105.9600       106.1900    -0.22%         -5.96%      +106.4600   +105.8600
 Euro/Yen         EURJPY=     131.58         130.98      +0.46%         -2.66%      +132.0100   +130.6100
 Dollar/Swiss     CHF=        0.9371         0.9398      -0.29%         -3.82%      +0.9418     +0.9360
 Sterling/Dollar  GBP=        1.3896         1.3848      +0.35%         +2.84%      +1.3929     +1.3818
 Dollar/Canadian  CAD=        1.2889         1.2963      -0.57%         +2.48%      +1.2994     +1.2864
 Australian/Doll  AUD=        0.7825         0.7764      +0.79%         +0.31%      +0.7842     +0.7757
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1636         1.1592      +0.38%         -0.45%      +1.1649     +1.1594
 Euro/Sterling    EURGBP=     0.8935         0.8907      +0.31%         +0.59%      +0.8937     +0.8906
 NZ Dollar/Dolar  NZD=        0.7303         0.7224      +1.09%         +3.06%      +0.7311     +0.7222
 Dollar/Norway    NOK=        7.7696         7.8188      -0.63%         -5.33%      +7.8285     +7.7453
 Euro/Norway      EURNOK=     9.6493         9.6461      +0.03%         -2.02%      +9.6585     +9.6107
 Dollar/Sweden    SEK=        8.2134         8.2613      +0.10%         +0.14%      +8.2737     +8.2057
 Euro/Sweden      EURSEK=     10.2010        10.1904     +0.10%         +3.68%      +10.2085    +10.1791
 
    
    
All spots FX= 
Tokyo spots AFX= 
Europe spots EFX= 
Volatilities FXVOL= 
Tokyo Forex market info from BOJ TKYFX World central bank news
CEN
Economic Forecasts... ECON   Official rates...INT/RATE
Forex Diary.......MI/DIARY   Top events........M/DIARY
Diaries...........DIARY Diaries Index........IND/DIARY
Press Digests.....PRESS Polls on G7 economies..SURVEY/
European markets......MARKETS/))

    

    
 (Additional reporting by Jemima Kelly in London
Editing by Larry King)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below