FOREX-Dollar climbs vs. yen as reports fuel trade deal hopes

* China open to partial trade deal -Bloomberg
* Sterling falls after report of EU concession on Brexit is
denied

(New throughout, updates rates and comments post-U.S. market
open; new byline, changes dateline, previous LONDON)
By Saqib Iqbal Ahmed
NEW YORK, Oct 9 (Reuters) - The U.S. dollar rose against the
safe-haven Japanese yen on revived hopes for an amicable
resolution to the U.S.-Chinese trade war, after a report that
China is still open to agreeing to a partial trade deal with the
United States.
The report, from Bloomberg, cited an official with direct
knowledge of the trade talks.
It comes a day after trade tensions flared again after the
U.S. State Department said it has imposed visa restrictions on
Chinese government and Communist Party officials it believes
responsible for the detention or abuse of Muslim minorities in
Xinjiang province.
Separately, the Financial Times newspaper reported that
Chinese officials are offering to increase annual purchases of
U.S. agricultural products as the two countries seek to resolve
their trade dispute. Vice Premier Liu He, China's top trade negotiator, is
scheduled to travel to Washington for their next round of trade
talks on Oct 10-11.
"Although President Trump has expressed little interest in a
partial agreement like the one that was struck with Japan, China
seems to be more sympathetic," Marc Chandler, chief market
strategist at Bannockburn Global Forex, said in a note.
Against the yen, which tends to strengthen during times of
geopolitical stress due to Japan's standing as the world's
biggest creditor, the greenback was 0.29% higher at 107.38 yen.
Currencies linked with greater investor risk appetite, such
as the Australian dollar, crept higher. The Aussie was up 0.13%,
while the New Zealand dollar rose 0.24%.
Still, some analysts advocated caution about the latest bout
of optimism around the U.S.-China trade talks.
"The Trump administration's decision to impose visa bans on
Chinese officials linked to abuses, blacklist some Chinese high
tech companies and a ban on U.S. pension funds investing in
China hardly make for a positive backdrop to the trade
talks, especially considering that China has yet to respond to
the U.S. moves," said Shaun Osborne, chief market strategist at
Scotiabank in Toronto.
The dollar index .DXY , which measures the greenback
against a basket of other currencies, was 0.06% lower on the day
as traders awaited the release of the U.S. Federal Open Market
Committee's minutes from its September meeting, due later on
Wednesday.
Meanwhile, sterling erased earlier gains on Wednesday after
the Northern Irish party that supports the British government
said it would emphatically oppose a reported European Union
concession on the Irish backstop under any Brexit deal.
The pound was 0.02% lower against the dollar at $1.2215,
after rising as high as $1.229.

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Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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