* Pound tumbles as no-deal Brexit talk grows louder
* Euro falls ahead of Thursday's ECB meeting
* Risk aversion hits FX markets, dollar shines
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Recasts, adds new comment, FX table, updates prices, changes byline, dateline; previous LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Sept 8 (Reuters) - The U.S. dollar climbed to a three-week peak on Tuesday, helped by losses
in sterling on renewed worries about Brexit as well as investors' aversion to risk amid a sell-off on Wall
Street.
Sterling fell to a four-week low against the dollar and was last down 0.9% at $1.3045 GBP=D3 .
Britain had gone into Tuesday's fresh round of Brexit trade talks warning it was ramping up no-deal
preparations. A sense of crisis took hold as the Financial Times reported the head of Britain's legal
department had quit over suggestions Boris Johnson wanted to override parts of the existing divorce
deal. GBP/
Aside from Brexit concerns, currency investors flocked to the safe-haven dollar as U.S. stocks got
hammered .N
"We're seeing a sterling-driven market that has seen the dollar rally. Markets are re-pricing a
no-Brexit deal," said Erik Bregar, head of FX strategy, at Exchange Bank of Canada in Toronto.
"There is also some risk-off moves in the stock market, which is a mild positive for the dollar," he
added.
In mid-morning trading, the dollar index rose 0.3% to 93.294 =USD , after earlier advancing to a
three-week high of 93.483.
The greenback, however, struggled against the safe-haven yen, falling 0.3% to 105.97 JPY=EBS ,
weighed down by weakness in U.S. stocks.
The yen rose despite data showing Japan's economy shrank an annualised 28.1% in April-June, worse than
the initial estimate of a 27.8% contraction, revised data from the Cabinet Office showed on Tuesday.
The euro, meanwhile, fell to a two-week low versus the dollar, and was last down 0.3% at $1.1785
EUR=EBS ahead of the European Central Bank's post-summer meeting later in the week.
Most analysts don't expect a change in the central bank's policy but are looking to the message on its
inflation forecasts and whether it seems concerned by the euro's strength following its recent rise to
$1.20.
Euro zone data also showed its economy shrivelled by slightly less than initially estimated in the
second quarter, but the drop was still the sharpest ever as consumer spending caved in due to COVID-19
restrictions. The yuan dipped against the dollar too in the offshore market, after U.S. President Donald Trump
warned about "decoupling" the U.S. and Chinese economies. The dollar was last up
0.2% at 6.848 yuan.
The Australian dollar AUD=D3 reversed course to drop 0.5% to US$0.7239 and the New Zealand dollar
NZD=D3 slid 0.8% to US$0.6636 following a Sunday statement from the central bank, which again raised the
prospect of negative rates. AUD/
In emerging markets, Turkey's lira hit another record low and Russia's rouble sagged to it lowest
since April amid ongoing talk about fresh Western sanctions. EMRG/FRX
========================================================
Currency bid prices at 10:34AM (1434 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1784 $1.1817 -0.28% +5.12% +1.1827 +1.1766
Dollar/Yen JPY= 105.9300 106.2500 -0.30% -2.69% +106.3800 +105.9100
Euro/Yen EURJPY= 124.84 125.53 -0.55% +2.37% +125.6400 +124.7100
Dollar/Swiss CHF= 0.9176 0.9159 +0.19% -5.19% +0.9199 +0.9160
Sterling/Dollar GBP= 1.3033 1.3166 -1.01% -1.70% +1.3171 +1.3010
Dollar/Canadian CAD= 1.3175 1.3096 +0.60% +1.46% +1.3198 +1.3086
Australian/Doll AUD= 0.7236 0.7274 -0.52% +3.06% +0.7309 +0.7217
ar
Euro/Swiss EURCHF= 1.0815 1.0822 -0.06% -0.34% +1.0846 +1.0811
Euro/Sterling EURGBP= 0.9040 0.8974 +0.74% +6.93% +0.9053 +0.8970
NZ NZD= 0.6634 0.6690 -0.84% -1.51% +0.6706 +0.6631
Dollar/Dollar
Dollar/Norway NOK= 9.0655 8.9329 +1.48% +3.27% +9.0936 +8.9224
Euro/Norway EURNOK= 10.6837 10.5603 +1.17% +8.60% +10.7020 +10.5510
Dollar/Sweden SEK= 8.8057 8.7691 +0.11% -5.80% +8.8320 +8.7655
Euro/Sweden EURSEK= 10.3777 10.3665 +0.11% -0.87% +10.4005 +10.3566
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Sterling volatility https://tmsnrt.rs/2R3Ue1t
Rouble rattled by sanctions talk https://tmsnrt.rs/3368Z9n
Currencies in 2020 https://tmsnrt.rs/2FgYrvM
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