FOREX-Dollar at two-year high, safe havens up on stormy global economy

* Dollar hits two-year high against basket of currencies
* Poor German manufacturing data adds to global economy woes
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Recasts; adds analyst quote; update prices; changed dateline,
previous LONDON)
By Kate Duguid
NEW YORK, May 23 (Reuters) - The dollar hit its highest
level in two years and the yen rose half a percent on Thursday
as economic and political uncertainties swept through Europe and
Asia, pinning down the euro and the yuan.
Worries over German manufacturing, the impact of a trade war
on Asian economies and deepening concerns over Brexit and
European parliamentary elections have broadly curbed risk
appetite and sent investors to perceived safe-haven assets.
"Safe havens were the currencies of choice as confidence in
global growth faltered," said Joseph Manimbo, senior market
analyst at Western Union Business Solutions. "The greenback and
safer rivals from Japan and Switzerland were in the driver's
seat."
While the United States is not without its own worries -
namely trade conflict with China - investors see the greenback
as a relative safe haven because of its preeminence in the
global economy and the extra cushion of having some of the
highest interest rates in the developed world.
The dollar hit a high of 98.371 against a basket of six
major currencies .DXY , its highest since May 2017. If it
maintains its path, the dollar will be on track for a fourth
consecutive month of gains.
"Certainly the dollar has been acting like something of a
safe haven even though the Fed has been more dovish than has
been expected," said Neil Mellor, FX strategist at BNY Mellon.
Activity in Germany's services and manufacturing sectors
fell in May, a survey showed on Thursday, reflecting the toll
that unresolved trade disputes are having on Europe's largest
economy. While a similar figure for the euro zone as a whole was
healthier, it still undershot expectations across the board,
hurting the single currency. The euro EUR=EBS dipped to its lowest in a month at $1.111
before recovering slightly to $1.114.
Compounding these worries, European parliamentary elections
began on Thursday with euroskeptic parties expected to do well,
raising concerns about the single currency's stability.
The yen also advanced broadly as persistent U.S.-China trade
fears and Brexit concerns fanned risk aversion. The yen JPY=
was 0.57% firmer at 109.71 to the dollar, having pulled back
from a two-week low of 110.675 plumbed on Tuesday.
Reports that the United States could impose restrictions on
Chinese technology company Hikvision renewed market jitters
about trade on Wednesday, reversing a relief rally that followed
Washington's move to temporarily ease curbs against Huawei
Technology Co Ltd HWT.UL . Brexit uncertainty has set sterling up for its 14th straight
day of losses against the euro - its longest losing streak in
the 20-year history of the single currency EURGBP= .