June 8, 2018 / 2:14 PM / 16 days ago

REFILE-FOREX-Dollar, yen rise ahead of tense G7 summit

 (Removes extraneous words "on Friday" in lead paragraph)
    * G7 meeting prelude to week filled with event risk
    * Dollar set for weekly loss
    * Graphic: World FX rates in 2018 tmsnrt.rs/2egbfVh

    By Gertrude Chavez-Dreyfuss
    NEW YORK, June 8 (Reuters) - The dollar rose on Friday after
a four-day losing streak, while perceived safe-haven currencies
such as the yen gained as investors grew cautious ahead of what
is expected to be a contentious G7 meeting in Canada later in
the session.
    Despite Friday's gains, the dollar was on track for its
largest weekly drop since late March.
    Next week's expected hike in U.S. interest rates by the
Federal Reserve, a European Central Bank policy meeting and a
Brexit bill vote all pose risks for currency traders and could
inject more volatility in the market. For a factbox, see

    "Headline risk is elevated into the G7 leaders' summit as
market participants focus on trade and President Trump," said
Shaun Osborne, chief currency strategist at Scotiabank in
Toronto.
    U.S. President Donald Trump lashed out at Canada and the
European Union on Friday, setting the tone for a hostile Group
of Seven (G7) summit and raising the specter of a trade war that
has unnerved Washington's top allies as well as
investors.
    In mid-morning trading, the dollar rose 0.3 percent against
a basket of currencies to 93.67. But it was poised to
notch its biggest weekly drop in 11 weeks.
    Trade disputes between the United States and its major
partners will be in the spotlight, with the Mexican peso
and the Canadian dollar leading losers. 
    The peso fell to its weakest level against the dollar in 16
months on Friday.
    High yielding currencies were a sea of red with Japanese yen
higher on the day. The dollar was last down 0.2 percent versus
the yen at 109.51

    ECB BETS
    The dollar has come under pressure this week as the euro
bounced back from 10-month lows thanks to an ebb in Italian
political concerns and speculation that the ECB could signal
intentions to start unwinding its massive bond purchasing
program when it holds the policy meeting on June 14.
    The euro fell 0.3 percent to $1.1758 after rising to
a three-week high of $1.1840 overnight as investors took profits
into this week's bounce.
    It was up more than 1 percent on the week and was set to
post its biggest weekly gain since mid-February.
    While expectations have grown that the ECB will signal its
intention to wind down the quantitative easing program, ING
strategists believe the Italian political situation and the
potential of a breakout in trade tensions will stay its hand.
    
    ========================================================
    Currency bid prices at 9:49AM (1349 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1759        $1.1797     -0.32%         -1.97%      +1.1810     +1.1728
 Dollar/Yen       JPY=        109.4800       109.6900    -0.19%         -2.83%      +109.8500   +109.2000
 Euro/Yen         EURJPY=     128.77         129.41      -0.49%         -4.76%      +129.7200   +128.1200
 Dollar/Swiss     CHF=        0.9871         0.9804      +0.68%         +1.29%      +0.9887     +0.9799
 Sterling/Dollar  GBP=        1.3374         1.3420      -0.34%         -1.02%      +1.3438     +1.3355
 Dollar/Canadian  CAD=        1.2988         1.2970      +0.14%         +3.25%      +1.3040     +1.2969
 Australian/Doll  AUD=        0.7585         0.7625      -0.52%         -2.76%      +0.7627     +0.7561
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1609         1.1566      +0.37%         -0.68%      +1.1618     +1.1538
 Euro/Sterling    EURGBP=     0.8791         0.8788      +0.03%         -1.02%      +0.8799     +0.8758
 NZ               NZD=        0.7021         0.7026      -0.07%         -0.93%      +0.7032     +0.7009
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.0700         8.0558      +0.18%         -1.68%      +8.1104     +8.0542
 Euro/Norway      EURNOK=     9.4912         9.5046      -0.14%         -3.65%      +9.5310     +9.4910
 Dollar/Sweden    SEK=        8.7284         8.6978      +0.08%         +6.42%      +8.7739     +8.6939
 Euro/Sweden      EURSEK=     10.2657        10.2607     +0.08%         +4.32%      +10.3113    +10.2600
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Saikat Chatterjee in London)
  
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