* Dollar, yen strengthen as China rebukes U.S. over Hong
Kong
* Pound slips after inconclusive election debate
* Fed minutes due at 1900 GMT
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tom Westbrook
SINGAPORE, Nov 20 (Reuters) - The dollar and the safe-haven
yen edged higher on Wednesday, but not much, as a lack of
clarity on U.S.-China trade talks kept investors cautious.
Ahead of the release of minutes from the U.S. Federal
Reserve's last policy meeting at 1900 GMT, traders were again
reading tea leaves on the trade negotiations' progress.
More upbeat reports hinting that talks were getting down to
nuts and bolts were offset by rising tension between the parties
over Hong Kong. The U.S. Senate's approval of bills aimed at
protecting human rights there drew a sharp rebuke from China.
After falling overnight, the greenback rose 0.2% on the
Australian dollar AUD=D3 to $0.6818. It added 0.1% on the New
Zealand dollar NZD=D3 to $0.6419, toppling the kiwi from a
two-week high.
The dollar was marginally higher against the euro EUR= at
$1.1074 and a fraction stronger against a basket of currencies
.DXY at 97.889.
The yen JPY= , regarded as a safe-haven by virtue of
Japan's status as the world's biggest creditor, touched 108.37
per dollar, its highest since Friday, before settling at 108.47.
"It's a very slightly risk-averse day," said Westpac FX
analyst Imre Spiezer. "There's a slightly cautious tone and
mixed messages from the trade war negotiations."
The United States and China have been locked in tit-for-tat
tariff hikes that have dented the global economy.
Hopes for progress on the dispute had risen overnight when
Bloomberg reported that negotiations, which failed in May, would
be considered a baseline in deciding what U.S. tariffs on China
would be rolled back. However they were dashed by another warning form U.S.
President Donald Trump of more tariffs if talks collapse and by
China's stern response to the passage of two Hong Kong-related
bills in the U.S. Senate. The proposals - which have not passed the House - would
require the U.S. to annually certify the protest-wracked city
retained enough autonomy to qualify for trade concessions, and
ban exporting crowd-control munitions to Hong Kong police.
China's foreign ministry spokesman called it a blatant
interference in China's internal affairs, and said the U.S.
faced "negative consequences" if it persisted. "It's another spanner in the works for the trade deal," said
Matt Simpson, senior market analyst at Gain Capital in
Singapore. He added, though, that markets have become inured to
this sort of back and forth after 18 months of trade tensions.
The Chinese yuan - the currency most sensitive to the trade
dispute - inched down to a two-week low of 7.0337 per dollar.
CNY=
China cut its new benchmark lending rate on Wednesday, as
widely expected, moving to drive down funding costs and shore up
an economy hurt by slowing demand and trade tariffs.
Elsewhere, the British pound GBP= extended an overnight
drop after an inconclusive election debate between Conservative
Prime Minister Boris Johnson, who leads in the polls, and Labour
leader Jeremy Corbyn. It weakened 0.1% to $1.2909 in Asian trade.
The release of the Fed minutes from October are the next
major scheduled event for markets, with investors looking for
insight into the reasoning for last month's rate cut.