FOREX-Euro, riskier currencies buoyed as investor sentiment improves

* Dollar falls vs most major currencies, apart from Japanese
yen
* Risky currencies like Aussie dollar, Norwegian crown spike
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Olga Cotaga
LONDON, May 26 (Reuters) - The euro got a boost on Tuesday
from a weaker dollar as growing optimism about a global recovery
from the COVID-19 pandemic supported riskier currencies.
The moves, however, lacked the exuberance of the equities
market as Sino-U.S. tensions kept the mood in check.
The trade-sensitive Australian and New Zealand dollars each
rose about 0.7%, but remain below last week's highs. The
Norwegian crown also rose nearly 1% versus the U.S. dollar. The
Chinese yuan, a barometer of U.S.-China relations, was mostly
left behind by a rally in other Asian currencies.
"At the moment the euro is torn between political risks on
the one hand and positive sentiment on the markets as a result
of further easing of the corona-related restrictions on the
other. This morning, the latter is dominating, allowing it to
appreciate against the dollar," said Thu Lan Nguyen, a currency
analyst at Commerzbank.
"However, in view of the continued disagreements within the
EU about a corona recovery fund, the single currency is likely
to run out of steam quite quickly in euro-dollar," she said.
The euro was last up 0.4% at $1.0935 EUR=EBS , while the
dollar was down by 0.2% against a basket of currencies at 99.50
=USD .
The mood among German exporters recovered somewhat in May
after a "catastrophic" April, the first full month of
coronavirus lockdown measures in Europe's largest economy, the
Ifo institute said on Tuesday. Japan ended its state of emergency on Monday, while Britain
said it will reopen thousands of shops, department stores and
shopping centres next month. Versus the Japanese yen, the dollar rose 0.2% to 107.89
JPY=EBS .
"Investors remain in risk-seeking mode, encouraged by
ongoing progress in suppressing COVID-19, which is allowing the
gradual reopening of economies," said Lee Hardman, currency
strategist at MUFG.
"At the same time, the unprecedented amount of monetary and
fiscal stimulus that has been put in place in recent months is
providing support for risk assets," Hardman said.
The Australian dollar was up 0.8% at 0.6590 AUD=D3 ,still
below its 0.6616 high from last week. The New Zealand dollar
rose 0.7% to 0.6145 NZD=D3 . The Norwegian crown jumped 1%
versus the U.S. currency to hit 9.9560 NOK=D3 .
Sterling traded at $1.2261, up 0.6% on the day versus the
U.S. dollar GBP=D3 . Against the euro, the recovery was more
moderate, up 0.2% at 89.19 pence EURGBP=D3 .
The Chinese yuan was last trading flat in the offshore
market at 7.1435 CNH=EBS .