CORRECTED-FOREX-Yuan, dollar soar and safe-haven currencies slide after U.S.-China trade truce (July 1)

(Corrects title of analyst in last paragraph)
* Trump, Xi agree to restart trade talks on the weekend
* Risk assets rally, safe-haven yen, franc fall
* Offshore yuan hits 2-month high, data tempers gains
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

By Tommy Wilkes and Saikat Chatterjee
LONDON, July 1 (Reuters) - The dollar and offshore Chinese
yuan rallied on Monday after the United States and China agreed
to restart their troubled trade talks, while the Japanese yen
and Swiss franc were the big casualties as investors sold
safe-haven currencies.
While reports of an agreement had been flagged ahead of U.S.
President Donald Trump and his Chinese counterparty Xi Jinping's
meeting on the sidelines of the G20 meeting, the outcome was
more positive than investors had expected.
Trump said he would hold back on new tariffs and that China
will buy more farm products. Trump also said the U.S. Commerce Department would study
whether to take Huawei HWT.UL off the list of firms banned
from buying components and technology from U.S. companies
without government approval.
Global stocks jumped and investors dumped safe-haven assets.
China's offshore yuan rose more than 0.5% to as high as
6.8165 yuan per dollar, near a two-month high, before easing
back to 6.8464 after disappointing factory activity data.
The dollar, which has fallen in recent weeks on rising
expectations for Federal Reserve interest rate cuts, rose 0.4%
against a basket of currencies, its index hitting 96.601 .DXY .
Versus the euro it rose 0.4% to $1.1328 EUR=EBS .
"The compromise reached between Trump and Xi at the week's
G20 meeting went further than most had expected, with Trump
putting the next tranche of tariffs on hold and reopening US
companies' ability to supply Huawei," said RBC currency
strategist Adam Cole.
"It is not clear, however, whether the latter will clear
congress and there is plenty of scope for trade talks to break
down again in the future."
The Japanese yen, which investors tend to buy when they are
looking for a safe place to put their money, dropped 0.6% to as
low as 108.53 JPY=EBS , its weakest since June 19.
The Swiss franc EURCHF=EBS lost 0.4% versus the euro to
1.1142 francs. It also slumped 0.8% against the dollar
CHF=EBS .
The Australian dollar AUD=D3 , sensitive to the economic
fortunes of China, the country's largest trading partner,
dropped 0.4% at $0.6993, with the weaker-than-expected factory
data out of China overshadowing the trade ceasefire.
Britain's sterling slipped 0.2% to $1.2670 GBP=D3 .
This week sees the release of some crucial U.S. economic
data including non-farm payrolls on Friday and non-manufacturing
activity on Wednesday, which should help investors better assess
whether the Federal Reserve will cut interest rates later this
month.
"Some Fed officials curbed easing views recently and the
data will help the market get a clearer picture of whether the
Fed stands poised to cut rates this month," said Koji Fukaya,
president at Office Fukaya Consulting.