FOREX-Yen slides, yuan rises as U.S.-China trade truce lifts risk appetite

* Yen, Swiss franc sag after Trump, Xi agree to resume talks
* Offshore yuan at highest levels since early May
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Adds details and quotes)
By Shinichi Saoshiro and Hideyuki Sano
TOKYO, July 1 (Reuters) - The yuan gained and the safe-haven
yen slid against the dollar on Monday as appetite for
risk-sensitive currencies improved after the United States and
China agreed to restart their troubled trade talks.
The dollar rose 0.4% to 108.350 yen JPY= , extending its
recovery from near a six-month low of 106.78 set last Tuesday.
After meeting Chinese President Xi Jinping in Japan on
Saturday on the sidelines of Group of 20 summit, U.S. President
Donald Trump said he would hold back on tariffs and that China
will buy more farm products. Trump also said the U.S. Commerce Department would study
over the next few days whether to take Huawei HWT.UL off the
list of firms banned from buying components and technology from
U.S. companies without government approval.
"Most of the discussions that took place between the United
States and China at the G20 had already been anticipated, but
the mention of Huawei was a bit of a surprise," said Yukio
Ishizuki, senior currency strategist at Daiwa Securities.
"There were more dollar short positions than expected, and
these are being covered. But once these shorts are covered, the
dollar's advance is likely to slow ahead of the non-farm jobs
report."
The yen, which attracts demand in times of political tension
and market turmoil, also lost ground against other currencies.
The Swiss franc, another safe-haven currency, fell 0.3% to
0.9791 franc to the dollar CHF= .
The offshore Chinese yuan gained 0.8% to 6.816 per dollar
CNH= , its highest levels since May 9, just days after Trump
threatened additional tariffs on China.
The euro advanced 0.4% to 123.210 yen EURJPY= and the
Australian dollar gained 0.5% to 76.21 yen AUDJPY= .
Supported by the greenback's rally against the yen, the
dollar index .DXY against a basket of six major currencies
added 0.15% to 96.280.
The euro was steady at $1.1368 and the Australian dollar was
also flat at $0.7027 AUD=D4 .
The U.S. Treasury 10-year yield US10YT=RR was up about 4
basis points at 2.037%, putting some distance between a
2-1/2-year low of 1.974% plumbed on June 20.

(Editing by Sandra Maler and Sam Holmes)