* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Result of British general election may ease concern about
Brexit
* U.S.-China trade deal boosts yuan
* Safe-haven yen weakens on trade news
* Traders brace for wild ride in financial markets
By Stanley White
TOKYO, Dec 13 (Reuters) - The pound rose to a
three-and-a-half year high versus the euro and the highest in
more than a year versus the dollar after exit polls suggested a
win for the Conservatives, which should help ensure the UK's
smooth exit from the European Union.
The Japanese yen fell and the Chinese yuan surged in
offshore trade after Bloomberg News reported that U.S. President
Donald Trump signed off on a trade deal with China that will
delay a new round of tariffs scheduled for Dec. 15. The early results suggest the election will relieve almost
four years of uncertainty about when Brexit would take place,
which should be supportive of the pound. A successful scaling back of trade tension would relieve one
major headwind to economic growth, which suggests lower demand
for the safe-haven yen. Avoiding new tariffs should also be a
boost to China's slowing economy, which should draw more
investors to the yuan.
Against the euro, sterling EURGBP=D3 rose around 2% to as
high as 82.85 pence, its firmest level since July 2016. The
pound GBP=D3 surged by 1.9% to $1.3430, reaching the highest
since May 2018.
Against the dollar, the yen JPY= fell to 109.50, the
weakest since Dec. 2.
In the offshore market, the Chinese yuan CNH=D3 traded at
6.9509 per dollar, after surging on Thursday to the highest
since Aug. 1.