August 31, 2018 / 4:56 PM / a month ago

FOREX-Dollar gains for 2nd day as global trade tension heats up

    * Euro falls on automobile tariff fears
    * Trump wants to push ahead with China tariffs -report
    * Emerging market currencies drop
    * Safe-havens such as Swiss franc, yen firm
    * Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh

 (New throughout, updates prices, market activity, adds Trump's
new remarks on NAFTA)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Aug 31 (Reuters) - The dollar rose for a second
straight session on Friday on concerns about global trade
conflict as the United States sparred with the European Union,
China, and Canada.
    On the week, the dollar index, a gauge of the greenback's
value against six currencies was flat. Over the last two weeks,
the dollar has declined about 1 percent.
    Shaun Osborne, chief FX strategist, at Scotiabank said the
markets have a "distinct risk-off look".
    "President Trump's pronouncements on Bloomberg late
yesterday, which are critical of the...EU, willing to move on
Chinese tariff...are adding to market concerns broadly," he
said.
    The greenback rallied late Thursday in a safe-haven move
after Bloomberg News reported that U.S. President Donald Trump
wanted to move ahead on a plan to impose tariffs on Chinese
imports worth $200 billion next week.
    That concern spilled over to the European Union after Trump
also said the European Union's proposal to eliminate auto
tariffs was "not good enough".
    Concerns about a NAFTA deal with Canada grew after Canadian
Foreign Minister Chrystia Freeland said on Friday Canada is
looking for a "good deal, not just any deal."
    The Toronto Star reported on Friday that Trump said in
off-the-record comments to Bloomberg News this week that any
trade deal with Canada would be "totally on our terms."

The report, which cited remarks it had obtained, ignited more
dollar buying.
    By early afternoon, the dollar index was up 0.5 percent at
95.177, with the euro down 0.7 percent at $1.1589.
The single currency had lost about 0.3 percent overnight,
pressured by a rise in Italian government bond yields.
    The Canadian dollar fell 0.7 percent versus the U.S. dollar
at 76 U.S. cents.
    The Japanese yen and Swiss franc also rose on safe-haven
buying, with investors fearful about Europe's outlook. Trump has
threatened to impose tariffs on cars assembled by German
automakers. 
    Trump also threatened in an interview with Bloomberg on
Thursday to withdraw from the World Trade Organization if "they
don't shape up."
    The cautious mood helped lift the yen, but by midday, the
dollar traded little changed at 110.97 yen  110.86.
    The Swiss franc rose for the sixth successive session versus
the dollar, which fell 0.1 percent to 0.9670 franc.
    Emerging market currencies fell. The Argentinian peso
, the world's worst-performing currency this year, was
down about 1 percent against the dollar, which last traded at
38.00 pesos. On Thursday, the Argentine peso tumbled 10 percent,
bringing month-to-date losses to 27 percent.
    Argentina's central bank voted unanimously at an emergency
meeting on Thursday to raise its benchmark rate to 60 percent
from 45 percent. 
    
    ========================================================
    Currency bid prices at 12:40PM (1640 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1588        $1.1670     -0.70%         -3.40%      +1.1690     +1.1585
 Dollar/Yen       JPY=        110.9800       110.9600    +0.02%         -1.50%      +111.1100   +110.6900
 Euro/Yen         EURJPY=     128.61         129.50      -0.69%         -4.86%      +129.8400   +128.5600
 Dollar/Swiss     CHF=        0.9700         0.9689      +0.11%         -0.44%      +0.9701     +0.9654
 Sterling/Dollar  GBP=        1.2952         1.3008      -0.43%         -4.17%      +1.3028     +1.2946
 Dollar/Canadian  CAD=        1.3075         1.2979      +0.74%         +3.94%      +1.3088     +1.2973
 Australian/Doll  AUD=        0.7182         0.7263      -1.12%         -7.96%      +0.7267     +0.7178
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1239         1.1308      -0.61%         -3.84%      +1.1314     +1.1240
 Euro/Sterling    EURGBP=     0.8945         0.8970      -0.28%         +0.70%      +0.8988     +0.8938
 NZ               NZD=        0.6611         0.6655      -0.66%         -6.70%      +0.6661     +0.6609
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.3922         8.3423      +0.60%         +2.24%      +8.3961     +8.3172
 Euro/Norway      EURNOK=     9.7247         9.7359      -0.12%         -1.26%      +9.7425     +9.7037
 Dollar/Sweden    SEK=        9.1582         9.1165      -0.26%         +11.66%     +9.1630     +9.0947
 Euro/Sweden      EURSEK=     10.6129        10.6410     -0.26%         +7.86%      +10.6510    +10.6030
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Tom Finn in London; Editing by David Gregorio)
  
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