* Dollar falls after rising overnight
* Swedish crown also falls against dollar to 17-year low
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Olga Cotaga
LONDON, Oct 9 (Reuters) - The euro rose as the dollar
weakened and the Swedish crown plunged to a 10-year low against
the euro as hopes waned for a breakthrough in U.S-China trade
talks.
Sweden's open economy makes the crown vulnerable to global
growth dynamics and therefore to the trade dispute between the
world's two biggest economies, which has hurt growth in the two
years since U.S. President Donald Trump ignited the trade war.
The Trump administration imposed visa restrictions on
Chinese officials and blacklisted Chinese companies over the
treatment of Muslim minorities, casting a pall over trade
discussions scheduled in Washington for the rest of the week.
The resulting risk aversion had bolstered the dollar, which
is considered a safe haven, but after it began to fall against
the euro in the early trading in Europe.
Investors also took into account remarks by Federal Reserve
Chairman Jerome Powell that he was open to further interest rate
cuts and bond purchases. The euro was up 0.2% at $1.09785 EUR=EBS . The index that
tracks the dollar against a basket of six other currencies was
down 0.1% at 99.007 .DXY .
The Swedish crown was steady, after earlier falling to a
10-year low of 10.9195 against the euro and a 17-year low of
9.9639 against the dollar EURSEK=D3 SEK= .
"It's a remarkable move," said Stephen Gallo, European head
of FX strategy at BMO Capital Markets. "You cannot get a clearer
trend here.
"The fall reflects deepening worsening global outlook,"
Gallo said. He expects the crown to fall to 11 against the
common currency, close to levels not seen since the financial
crisis. Sweden's competitiveness as an exporter led to the
crown's decline, he said.
The euro was a sell against the dollar, though, since it's
likely to maintain its status as a safe-haven currency and U.S.
investors are likely to keep their dollars at home, Gallo added.
Chinese Vice Premier Liu He is due to arrive this week in
Washington for trade talks. He is expected to meet U.S. Trade
Representative Robert Lighthizer and Treasury Secretary Steven
Mnuchin on Thursday.
Elsewhere, the pound was slightly higher, though not far
from the one-month low it reached the day before. Sterling was
up 0.2% at $1.2237 and flat against the euro at 89.78 pence
GBP=D3 EURGBP=D3 .
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Swedish crown plunges to reflect worries of a slowdown in global
growth https://tmsnrt.rs/2IyQscg
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