FOREX-Dollar holds near highs on trade jitters, Kiwi sinks to 4-yr low

* New Zealand dollar down after business confidence drop
* Euro stuck below $1.10 on demand for dollars
* Sterling rises above $1.23 after last week's losses
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Tommy Wilkes
LONDON, Sept 30 (Reuters) - The dollar held near recent
highs on Monday as uncertainty over the U.S.-China trade war
encouraged investors to move into the safety of the greenback,
while the New Zealand dollar slid to a 4-year low after business
confidence tumbled.
Traders in Asia mostly shrugged off news that the Trump
administration was considering de-listing Chinese companies from
U.S. stock markets after the reports were hosed down by Treasury
officials, but investor sentiment remained fragile. Worries that negotiations between China and the United
States will not lead to a trade deal, and deepening political
uncertainty in the United States after the start of an
impeachment inquiry into President Donald Trump, have unnerved
investors and boosted demand for dollars.
The U.S. currency, measured against a basket of rival
currencies, was little changed at 99.061 .DXY in early
European trade, while against the euro it stood at $1.0945
EUR=EBS .
The dollar earlier this month hit a more than 2-year high of
99.37.
"Were there better stories overseas, we suspect the dollar
might be a little weaker right now, but there are not
(industrial production numbers are still plumbing the depths in
many countries) and thus the dollar is holding its gains," ING
analysts said in a research note.
New Zealand's dollar dropped 0.6% to as low as $0.6249
NZD=D3 , its weakest since 2015, after a survey showed business
sentiment weakening to an 11-1/2 year low in September,
strengthening the case for a reduction in interest rates.
In Australia, forecasts for a rate cut on Tuesday firmed
with gathering economic gloom. Markets are pricing a better than
75% chance the Reserve Bank of Australia will reduce its cash
rate for a third time this year. RBAWATCH
The Aussie fell 0.2% to $0.6751 AUD=D3 .
Euro zone inflation numbers for September were largely
weaker than expected, but the euro was little moved.

The Japanese yen firmed 0.2% to 107.75 yen per dollar
JPY=EBS .
"Risk-off sentiment is prevailing in the market," said
Anthony Doyle, global cross-asset specialist at fund manager
Fidelity International in Sydney, citing U.S. political turmoil
and Brexit as looming worries, besides the trade war.
"There's a lot of uncertainty out there," he said.
Sterling was a touch higher at $1.2307 GBP=D3 , recovering
some of last week's losses after investors took fright at the
standoff in Britain's parliament over Britain's exit from the
European Union.
Traders are expecting a lull in trade-war headlines as China
takes a week-long holiday from Tuesday, which marks the 70th
anniversary of the People's Republic of China.
China's offshore yuan CNH=EBS held steady at 7.135 per
dollar.