* Wall Street's gains briefly curb demand for greenback
* Euro, pound hold support levels, yen stalls
* Sterling on track for steepest monthly loss in a year
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates market action, adds quote)
By Richard Leong
NEW YORK, May 30 (Reuters) - The dollar was little changed on Thursday, on track to post a
fourth straight month of gains, as the trade stand-off between China and the United States
prompted traders to put money into perceived safe currencies including the greenback.
Safe-haven demand lifted the dollar to a 2-year high against a basket of currencies last
week. Appetite for the greenback was somewhat curbed on Thursday as Wall Street stabilized
following steep losses due to the trade worries and U.S. bond yields briefly rose before
resuming their recent fall. .N US/
The euro and sterling held above key support levels at $1.11 and $1.26, respectively, also
restraining the greenback's momentum, analysts said.
"With the U.S.-China trade situation, people don't want to do anything until there's a
resolution," Joseph Trevisani, senior analyst at FX Street, said of this week's light volume
and tight trading ranges.
In late U.S. trading, an index that tracks the dollar against six major currencies .DXY
was down -0.01% at 98.151. It reached 98.371 a week ago, its strongest since May 2017.
The S&P 500 .SPX was down 0.08%, wiping out initial gains, while the benchmark 10-year
U.S. Treasury note yield US10YT=RR was 1.2 basis points lower at 2.224%, reversing an earlier
rise.
The dollar index has increased 0.76% in May, putting it on track for four straight months
of gains. Its strength has persisted even as traders have increased their bets on multiple rate
cuts by the Federal Reserve. The greenback will likely extend its monthly winning streak against the euro, which began
in January.
Signs of a sagging euro zone economy, together with worries about the rise of euro-sceptic
political parties within EU member countries, have hurt the zone's common currency.
The euro EUR=EBS was up 0.04% at $1.1135, within striking distance of $1.11055 hit a week
ago, which was a two-year low.
The dollar has also remained resilient against the yen, despite the risk-averse
environment.
The greenback was 0.05% lower at 109.535 yen JPY= , staying above a two-week low set on
Wednesday.
Analysts said the yen, a safe-haven currency backed by Japan's status as the world's
biggest creditor nation, remained relatively weak because of domestic demand for dollars.
"As there's persistent yen selling and dollar buying from Japanese investors when the rate
approaches the 109.10 yen per dollar level, it's not easy for the yen to rise above the 109
level," said Yukio Ishizuki, senior currency strategist at Daiwa Securities.
Sterling GBP=D3 was poised for the biggest monthly drop against the dollar in a year as
the imminent departure of Theresa May as prime minister deepened fears about a chaotic exit for
Britain from the European Union. On Thursday, the pound was 0.13% lower at $1.261, while the euro EURGBP=D3 was up 0.17%
at 88.31 pence.
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Currency bid prices at 1505 EDT (1905 GMT):
Description RIC Last U.S. Close Pct YTD Pct High Bid Low Bid
Previous Change Change
Session
Euro/Dollar EUR= $1.1133 $1.1129 +0.04% -2.93% +1.1144 +1.1117
Dollar/Yen JPY= 109.5100 109.5800 -0.06% -0.68% +109.9200 +109.4900
Euro/Yen EURJPY= 121.93 121.97 -0.03% -3.40% +122.2500 +121.9500
Dollar/Swiss CHF= 1.0071 1.0075 -0.04% +2.62% +1.0098 +1.0070
Sterling/Dollar GBP= 1.2608 1.2625 -0.13% -1.17% +1.2639 +1.2581
Dollar/Canadian CAD= 1.3508 1.3519 -0.08% -0.95% +1.3520 +1.3485
Australian/Doll AUD= 0.6910 0.6917 -0.10% -1.97% +0.6936 +0.6900
ar
Euro/Swiss EURCHF= 1.1215 1.1222 -0.06% -0.35% +1.1249 +1.1214
Euro/Sterling EURGBP= 0.8828 0.8812 +0.18% -1.74% +0.8841 +0.8809
NZ NZD= 0.6506 0.6509 -0.05% -3.14% +0.6527 +0.6496
Dollar/Dollar
Dollar/Norway NOK= 8.7718 8.7518 +0.23% +1.54% +8.7770 +8.7383
Euro/Norway EURNOK= 9.7675 9.7432 +0.25% -1.40% +9.7730 +9.7331
Dollar/Sweden SEK= 9.5303 9.5494 -0.15% +6.32% +9.5632 +9.5270
Euro/Sweden EURSEK= 10.6130 10.6290 -0.15% +3.40% +10.6415 +10.5997
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GRAPHIC: Year-to-date currency performances https://tmsnrt.rs/2Iazj7L
GRAPHIC: Traders' U.S. interest rate expectations https://tmsnrt.rs/2WP9W1m
GRAPHIC: Traders' U.S. interest rate expectations interactive https://tmsnrt.rs/2WP9q3q
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