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FOREX-Dollar rises to 3-week high as sterling drops, Wall St shares fall

    * Pound tumbles as no-deal Brexit talk grows louder
    * Euro falls ahead of Thursday's ECB meeting
    * Risk aversion hits FX markets, dollar shines
    * Graphic: World FX rates in 2020

 (Recasts, adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Sept 8 (Reuters) - The U.S. dollar climbed to a three-week peak on Tuesday, helped by losses
in sterling on renewed worries about Brexit as well as investors' aversion to risk amid a sell-off on Wall
    Sterling fell to a four-week low against the dollar and was last down 0.9% at $1.3045.
    Britain had gone into Tuesday's fresh round of Brexit trade talks warning it was ramping up no-deal
preparations. A sense of crisis took hold as the Financial Times reported the head of Britain's legal
department had quit over suggestions Boris Johnson wanted to override parts of the existing divorce
    Aside from Brexit concerns, currency investors flocked to the safe-haven dollar as U.S. stocks got
    "We're seeing a sterling-driven market that has seen the dollar rally. Markets are re-pricing a
no-Brexit deal," said Erik Bregar, head of FX strategy, at Exchange Bank of Canada in Toronto.
    "There is also some risk-off moves in the stock market, which is a mild positive for the dollar," he
    In mid-morning trading, the dollar index rose 0.3% to 93.294, after earlier advancing to a
three-week high of 93.483.
    The greenback, however, struggled against the safe-haven yen, falling 0.3% to 105.97,
weighed down by weakness in U.S. stocks.
    The yen rose despite data showing Japan's economy shrank an annualised 28.1% in April-June, worse than
the initial estimate of a 27.8% contraction, revised data from the Cabinet Office showed on Tuesday.

    The euro, meanwhile, fell to a two-week low versus the dollar, and was last down 0.3% at $1.1785
 ahead of the European Central Bank's post-summer meeting later in the week.
    Most analysts don't expect a change in the central bank's policy but are looking to the message on its
inflation forecasts and whether it seems concerned by the euro's strength following its recent rise to
    Euro zone data also showed its economy shrivelled by slightly less than initially estimated in the
second quarter, but the drop was still the sharpest ever as consumer spending caved in due to COVID-19
    The yuan dipped against the dollar too in the offshore market, after U.S. President Donald Trump
warned about "decoupling" the U.S. and Chinese economies. The dollar was last up
0.2% at 6.848 yuan.
    The Australian dollar reversed course to drop 0.5% to US$0.7239 and the New Zealand dollar
 slid 0.8% to US$0.6636 following a Sunday statement from the central bank, which again raised the
prospect of negative rates.
    In emerging markets, Turkey's lira hit another record low and Russia's rouble sagged to it lowest
since April amid ongoing talk about fresh Western sanctions.
    Currency bid prices at 10:34AM (1434 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1784        $1.1817     -0.28%         +5.12%      +1.1827     +1.1766
 Dollar/Yen       JPY=        105.9300       106.2500    -0.30%         -2.69%      +106.3800   +105.9100
 Euro/Yen         EURJPY=     124.84         125.53      -0.55%         +2.37%      +125.6400   +124.7100
 Dollar/Swiss     CHF=        0.9176         0.9159      +0.19%         -5.19%      +0.9199     +0.9160
 Sterling/Dollar  GBP=        1.3033         1.3166      -1.01%         -1.70%      +1.3171     +1.3010
 Dollar/Canadian  CAD=        1.3175         1.3096      +0.60%         +1.46%      +1.3198     +1.3086
 Australian/Doll  AUD=        0.7236         0.7274      -0.52%         +3.06%      +0.7309     +0.7217
 Euro/Swiss       EURCHF=     1.0815         1.0822      -0.06%         -0.34%      +1.0846     +1.0811
 Euro/Sterling    EURGBP=     0.9040         0.8974      +0.74%         +6.93%      +0.9053     +0.8970
 NZ               NZD=        0.6634         0.6690      -0.84%         -1.51%      +0.6706     +0.6631
 Dollar/Norway    NOK=        9.0655         8.9329      +1.48%         +3.27%      +9.0936     +8.9224
 Euro/Norway      EURNOK=     10.6837        10.5603     +1.17%         +8.60%      +10.7020    +10.5510
 Dollar/Sweden    SEK=        8.8057         8.7691      +0.11%         -5.80%      +8.8320     +8.7655
 Euro/Sweden      EURSEK=     10.3777        10.3665     +0.11%         -0.87%      +10.4005    +10.3566
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Marc Jones in London
Editing by Nick Zieminski)