November 23, 2018 / 3:17 PM / 7 months ago

FOREX-Dollar on track for largest weekly gain in one month

    * Euro sinks after PMI surveys disappoint
    * Yen, Swiss franc rise as risk aversion gains
    * Oil price drop boosts dollar, yen, Swiss franc
    * Graphic: World FX rates in 2018

 (Recasts, adds comment, updates prices, changes dateline;
Previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Nov 23 (Reuters) - The dollar rose on Friday, on
pace for its biggest weekly percentage increase in a month, as
risk appetite declined and investors sought the currency's
safety following a steep drop in oil prices that suggested
global growth is slowing.
    The safe-haven yen and Swiss franc also advanced.
    The drop in oil prices fueled a risk-off wave across the
board. U.S. crude futures were last down 6 percent.
    "Risk aversion has been the main driver all week, with oil
prices driving market sentiment," said Shaun Osborne, chief FX
strategist at Scotiabank in Toronto.
    "The dollar is better overall for the week because of the
risk-off stance, despite a fairly significant pricing out of
2019 rate hike expectations," he added.
    In mid-morning trading, the dollar index was up 0.1
percent on the day at 96.836 . It has gained in five of the last
six sessions.
    The dollar's near-term outlook, however, has dimmed a little
bit as some of the recent U.S. economic numbers have come in
weaker than expected and several Federal Reserve officials have
struck a cautious tone on the economy. All told, investors are
increasingly of the mindset that the Fed may be nearing the end
of its tightening cycle.
    The euro slumped on signs economic growth could be slowing
across the euro zone, with worries about Brexit and Italy's
budget negotiations also weighing on the single currency.
    Business growth in the euro zone slowed much more quickly
than expected this month, a Purchasing Managers Index survey
    The disappointing readings, hastened by a U.S.-led trade
war, will be of concern to the European Central Bank, which is
expected to end its 2.6 billion euro asset purchase program next
month before raising interest rates next year.
    After German private-sector growth slowed to its lowest
level in nearly four years, the euro dropped into negative
territory and was last down 0.6 percent at $1.1345. The
euro also dropped 0.3 percent against the Swiss franc, to 1.1314
    In other currency trading, the yen rose across the board on
fears about the implications of lower oil prices on global
    The dollar slipped 0.2 percent against the yen to 112.78 yen
, while the euro tumbled 0.8 percent to 127.97 yen
    The Australian dollar, often considered a gauge for
global risk appetite, weakened 0.3 percent to U$0.7232.
    Analysts expect the Aussie to remain subdued ahead of a
meeting between U.S. and Chinese leaders at a G20 meeting in
Argentina at the end of the month, with markets watching for any
sign of whether they may agree to de-escalate their trade war.  
    Currency bid prices at 9:57AM (1457 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1344        $1.1407     -0.55%         -5.42%      +1.1421     +1.1338
 Dollar/Yen       JPY=        112.8000       112.9300    -0.12%         +0.12%      +113.0100   +112.6700
 Euro/Yen         EURJPY=     127.98         128.77      -0.61%         -5.33%      +128.9300   +127.9000
 Dollar/Swiss     CHF=        0.9972         0.9943      +0.29%         +2.35%      +0.9980     +0.9935
 Sterling/Dollar  GBP=        1.2829         1.2876      -0.37%         -5.05%      +1.2882     +1.2805
 Dollar/Canadian  CAD=        1.3240         1.3188      +0.39%         +5.29%      +1.3258     +1.3184
 Australian/Doll  AUD=        0.7234         0.7254      -0.28%         -7.27%      +0.7257     +0.7219
 Euro/Swiss       EURCHF=     1.1313         1.1342      -0.26%         -3.22%      +1.1354     +1.1306
 Euro/Sterling    EURGBP=     0.8840         0.8852      -0.14%         -0.48%      +0.8877     +0.8839
 NZ               NZD=        0.6779         0.6811      -0.47%         -4.33%      +0.6819     +0.6768
 Dollar/Norway    NOK=        8.5839         8.5300      +0.63%         +4.59%      +8.5968     +8.5279
 Euro/Norway      EURNOK=     9.7409         9.7313      +0.10%         -1.09%      +9.7547     +9.7210
 Dollar/Sweden    SEK=        9.0816         9.0394      -0.04%         +10.73%     +9.0907     +9.0239
 Euro/Sweden      EURSEK=     10.3045        10.3090     -0.04%         +4.74%      +10.3162    +10.2930
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Tom Finn in London; Editing by Dan Grebler)
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