* Traders await more clues on rate cuts from Fed officials
* Euro hovers around $1.14, hits new 3-month high
* Yen rises above 107 vs dollar, highest since January
* Further dollar softness seen hinging on G20 summit outcome
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates market action, changes dateline, previous LONDON)
By Richard Leong
NEW YORK, June 25 (Reuters) - The dollar slipped against
most major currencies on Tuesday, hitting a three-month low
versus the euro, as expectations of multiple decreases of U.S.
interest rates by the Federal Reserve have spurred selling of
the U.S. currency.
Growing tensions between Iran and the United States stoked
fresh safe-haven buying of yen, which reached its strongest
levels against the greenback since early January.
Traders await fresh clues on the Fed's stance on possible
rate cuts, starting as soon as next month. A number of Fed
officials were scheduled to speak on Tuesday with Fed Chairman
Jerome Powell due at 1 p.m. (1700 GMT). Last week's signal from the U.S. central bank that it was
ready to lower borrowing costs to counter slowing domestic
growth and sluggish inflation caused traders to exit their
earlier bullish positions on the dollar, analysts said.
Interest rates futures implied traders fully priced in a
quarter-point rate cut from the Fed next month and saw high
rising probability of at least two more cuts after July.
Falling U.S. bond yields and bearish technical indicators
have stoked the view the greenback would have more room to fall
in the coming months, analysts said.
"This has more legs to go," said Paresh Upadhyaya, director
of currency strategy at Amundi Pioneer Investments in Boston.
At 10:55 a.m. (1455 GMT), the dollar JPY=EBS was down
0.34% at 106.94 yen after hitting 106.78 yen during Asian
trading, which was its weakest since Jan. 3.
Demand for the yen was underpinned by new U.S. sanctions
against Iran's supreme leader and foreign minister. Iran said on
Tuesday the move had closed off diplomacy between the two
countries. The greenback was 0.13% lower versus the pound GBP=D3 . It
was modestly weaker against the Canadian, Australian and New
Zealand dollars. CAD=D4 AUD=D4 NZD=D4
On the other hand, the euro was down 0.12% at $1.1384. The
single currency retreated from $1.1412 earlier Tuesday, which
was its highest since March 21.
The dollar index moved further away from its 200-day moving
average at 95.995.
Investors are monitoring whether U.S. President Donald Trump
and Chinese President Xi Jinping will at least call a truce in
their trade war when they meet at a summit of the G20 major
economies in Osaka, Japan, later this week.
"The next risk event is the G20 summit. It will give us a
sense just how far things are between U.S. and China on trade,"
Upadhyaya said.
Trump considers his meeting with Xi an opportunity to
"maintain his engagement" and see where China is on their trade
dispute, a senior U.S. official said on Monday. Currency bid prices at 10:53AM (1453 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1392 $1.1396 -0.04% -0.67% +1.1412 +1.1377
Dollar/Yen JPY= 106.9100 107.2800 -0.34% -3.04% +107.4000 +106.7900
Euro/Yen EURJPY= 121.79 122.28 -0.40% -3.51% +122.4600 +121.6600
Dollar/Swiss CHF= 0.9719 0.9718 +0.01% -0.97% +0.9774 +0.9695
Sterling/Dollar GBP= 1.2728 1.2739 -0.09% -0.23% +1.2783 +1.2711
Dollar/Canadian CAD= 1.3168 1.3177 -0.07% -3.41% +1.3196 +1.3152
Australian/Doll AUD= 0.6971 0.6961 +0.14% -1.11% +0.6974 +0.6954
ar
Euro/Swiss EURCHF= 1.1075 1.1076 -0.01% -1.59% +1.1124 +1.1062
Euro/Sterling EURGBP= 0.8947 0.8944 +0.03% -0.41% +0.8963 +0.8917
NZ NZD= 0.6651 0.6617 +0.51% -0.98% +0.6653 +0.6618
Dollar/Dollar
Dollar/Norway NOK= 8.5126 8.4789 +0.40% -1.46% +8.5205 +8.4769
Euro/Norway EURNOK= 9.6974 9.6678 +0.31% -2.11% +9.7023 +9.6644
Dollar/Sweden SEK= 9.2563 9.2778 -0.29% +3.26% +9.2932 +9.2421
Euro/Sweden EURSEK= 10.5449 10.5760 -0.29% +2.74% +10.5906 +10.5180
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GRAPHIC-Trade tensions boost U.S. rate-cut expectations https://tmsnrt.rs/2KdE2by
GRAHIC-Trade tensions boost U.S. rate-cut expectations
interactive https://tmsnrt.rs/2KdDNxa
GRAPHIC-Dollar vs euro, Japanese yen https://tmsnrt.rs/2Ft9GPi
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