* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Daniel Leussink
TOKYO, May 28 (Reuters) - The dollar rose against its major
peers on Tuesday as investors awaited new trading catalysts
after the European Union parliamentary elections showed a
polarisation of the 28-member block.
The yen was in a holding pattern as U.S. President Donald
Trump, who is visiting Japan, is seen putting pressure on Tokyo
to reduce the nation's large trade surplus with the United
States.
Many of the currency pairs hugged recent ranges, as activity
thinned out overnight with stock exchanges in the United States
and Britain closed for market holidays.
The euro struggled following remarks by two officials from
the currency bloc that the European Commission is likely to
start disciplinary steps against Italy on June 5 over the
country's rising debt and structural deficit levels, which break
European Union rules. Against a basket of six peers, the dollar gained 0.2% to
97.804 .DXY , trading about 0.6% off a two-year high of 98.371
hit on Thursday. The index is still up 1.7% for the year.
The euro slipped 0.1% to $1.1182 EUR= after bouncing from
a 1-1/2-week high of $1.1215 overnight following the outcome of
European parliamentary elections.
Pro-European parties retained a firm grip on the EU
parliament, provisional results from the bloc's elections showed
on Monday, though eurosceptic opponents saw strong
gains. "There is a polarisation of the European parliament which is
a kind of representation of the overall European political
situation," said Masafumi Yamamoto, chief currency strategist at
Mizuho Securities. "That will be broadly negative for the euro."
Yamamoto said the news of possible disciplinary steps
against Italy over its national debt hurt the euro, though the
market reaction was limited due to the U.S. and UK holidays.
Against the yen, the greenback dipped 0.1% to 109.46 yen
JPY= , 0.4% above a three-month low of 109.02 yen touched three
weeks ago.
The dollar's rise against the Japanese currency has been
limited as Trump sought to pressure Japan to take measures to
reduce its trade surplus with the world's largest economy.
Trump said on Monday he expected the two countries to be
"announcing some things, probably in August, that will be very
good for both countries" on trade.
Japan's Economy Minister Toshimitsu Motegi said on Tuesday
the U.S. President's comment probably reflected his hope for
quick progress in negotiations. "While it's positive that there will be time for solving the
U.S.-Japan trade issue, that doesn't mean the problem has been
has been resolved," said Kumiko Ishikawa, senior analyst at Sony
Financial Holdings. "(But) it's providing some relief."
Ishikawa said it remained hard for investors to take on risk
due to the yet-to-be-resolved trade negotiations between the
United States and China.
Elsewhere in the foreign exchange market, the Australian
dollar edged up to $0.6919 AUD=D4 , about 0.75% above a
four-month low last touched on Thursday last week.
Bitcoin BTC=BTSP , which on Monday had touched $8,939.18,
its highest level in more than a year, was last up 0.15% at
$8,783.11. The cryptocurrency topped $8,000 for the first time
since July 2018 on May 13.
(Editing by Shri Navaratnam and Sam Holmes)