FOREX-Dollar extends losses; Kiwi dollar hits 18-month high

* Dollar down 0.1% after weak data
* Dollar-yen below key 105 level
* Kiwi dollar gains after positive economic comments
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

LONDON, Sept 7 (Reuters) - The dollar extended overnight
losses on Friday after data on Thursday pointed to a slowdown in
the U.S. economic recovery, while riskier currencies gained,
with the Aussie and Kiwi dollars up.
Data released on Thursday showed that the number of people
filing new claims for unemployment benefits fell less than
expected. Homebuilding also fell, after strong gains in the previous
three months. The dollar - which had been boosted by the Federal Reserve
upgrading its 2020 economic forecast earlier this week - gave up
these gains, and was down 0.1% at 0728 GMT, set for a weekly
loss.
The Japanese yen gained against the dollar, holding close to
the seven-week high hit on Thursday, at 104.610 JPY=EBS .
At its meeting, the Bank of Japan maintained its -0.1%
short-term interest rate target and a pledge to cap 10-year bond
yields around zero, as widely expected. Noting that dollar-yen has passed the key 105 level, MUFG's
head of research for EMEA global markets, Derek Halpenny, wrote
to clients that he expects the yen to grind higher.
"The prospect of the BoJ influencing the yen weaker is
becoming a less likely scenario anyway given the actions taken
since COVID leaves the BoJ with little further to do," he said.
The New Zealand dollar was the biggest mover, gaining
overnight and hitting its highest in a year and a half in early
London trading, after the country's finance minister sounded
positive about the economy in television interviews.
"Given these optimistic comments and the 'risk-on' tone in
stock markets in Asia this morning, I think we could see further
gains in NZD," Marshall Gittler, head of investment research at
BDSwiss Group wrote.
The Reserve Bank of New Zealand meets next week. The
governor has said that the policy rate will stay at 0.25% until
next March.
At 0729 GMT, it was at 0.6788 versus the U.S. dollar, up
0.5% on the day NZD=D3 .
The Australian dollar also gained, up 0.1% on the day
AUD=D3 .
The Norwegian crown benefited from oil prices rising for the
fourth day straight, and was up 0.2% versus the U.S. dollar at
9.0330 NOK=D3 . The euro was up less than 0.1%, at $1.1855, set for minimal
gains for the second week in a row EUR=EBS .
The pound was steady at $1.2981 and 91.285 pence per euro
GBP=D3 EURGBP=D3 .
The currency fell sharply on Thursday when the Bank of
England said monetary policymakers had been briefed on how to
implement negative rates, but recovered later in the session.
The European Union's Brexit negotiator said he thinks a
Brexit trade deal with Britain is still possible.