News: FOREX-Dollar rises to 13-month peak on anxiety over Turkey

• Euro slumps to 13-month lows vs dollar, Swiss franc
• Turkish lira rebounds from record low but concerns persist
• Safe-haven demand propels dollar to highest since June 2017
• Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh

(Updates market action, adds new graphic, quote)

The dollar advanced to a 13-month peak on Tuesday against a basket of major currencies as traders increased their safe-haven holdings of the U.S. currency on worries about the fallout from the Turkish lira's recent fall.

While the lira rebounded from an all-time low, concerns about European banks' exposure to the country spurred selling of the euro, sending it to 13-month lows against the greenback and Swiss franc.

An index that tracks the dollar against the euro, yen, sterling and three other currencies .DXY touched 96.794, the highest since June 2017. It was last up 0.4 percent at 96.762.

The Turkish lira TRYTOM=D3 has lost more than 40 percent of its value against the dollar this year, hit by worries over President Tayyip Erdogan's calls for lower interest rates and fraying ties between the United States and Turkey, a NATO ally.

 . 
	On Tuesday, however, the lira recovered some ground, trading 

at 6.4300 to the dollar at 1827 GMT, up 6.8 percent on the day, after plunging to an all-time low of 7.24 on Monday.

Sanctions imposed by Washington on Ankara have stoked anxiety about Turkey's economy, already bogged down by double-digit inflation.

The currency was supported by remarks from Turkish finance minister Berat Albayrak, who told a news conference the lira will strengthen.

"I don't believe it's all over," said Minh Trang, senior currency trader at Silicon Valley Bank in Santa Clara, California. "We are just getting a bit of reprieve from the recent down move."

Concerns have lingered about European banks' loans to Turkey, stoking selling of regional stocks and the single currency, analysts said.

The euro declined to $1.1330, the lowest since July 2017, before edging to $1.13335, down nearly 0.7 percent on the day EUR=EBS .

The common currency touched a 13-month low at 1.12660 Swiss franc EURCHF=EBS before moving to $1.12775, down 0.4 percent, according to EBS data.

The euro EURJPY=EBS held above a 10-plus week low against the yen reached on Monday. It was last down 0.2 percent at 126.08 yen.

The lira's bounce lifted other emerging market currencies that were slammed by fears about capital outlooks from the rest of the sector if Turkey's woes spread.

The South African rand ZAR= rose nearly 1 percent, while the Indian rupee steadied INR= above an all-time low set earlier Tuesday.

"The worst of the broader contagion fears is likely behind us, and we do not expect further knock-on effects from Turkish concerns for the major currencies or for global financial markets more broadly," said Erik Nelson, currency strategist at Wells Fargo Securities in New York.

Currency bid prices at 2:45PM (1845 GMT)

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	  EUR=		$1.1338		$1.1408	 -0.61%		 -5.49%	  +1.1429	 +1.1331 
 Dollar/Yen	   JPY=		111.2100	   110.7100	+0.45%		 -1.30%	  +111.3100   +110.5900 
 Euro/Yen		 EURJPY=	 126.10		 126.33	  -0.18%		 -6.72%	  +126.9800   +125.8200 
 Dollar/Swiss	 CHF=		0.9944		 0.9932	  +0.12%		 +2.06%	  +0.9950	 +0.9901 
 Sterling/Dollar  GBP=		1.2712		 1.2766	  -0.42%		 -5.92%	  +1.2825	 +1.2705 
 Dollar/Canadian  CAD=		1.3081		 1.3131	  -0.38%		 +4.01%	  +1.3136	 +1.3071 
 Australian/Doll  AUD=		0.7235		 0.7268	  -0.45%		 -7.26%	  +0.7283	 +0.7224 
 ar																							  

 Euro/Swiss	   EURCHF=	 1.1277		 1.1329	  -0.46%		 -3.52%	  +1.1354	 +1.1266 
 Euro/Sterling	EURGBP=	 0.8917		 0.8935	  -0.20%		 +0.38%	  +0.8941	 +0.8898 
 NZ Dollar/Dolar  NZD=		0.6572		 0.6577	  -0.08%		 -7.25%	  +0.6609	 +0.6569 
 Dollar/Norway	NOK=		8.4112		 8.3618	  +0.59%		 +2.49%	  +8.4201	 +8.3388 
 Euro/Norway	  EURNOK=	 9.5386		 9.5420	  -0.04%		 -3.15%	  +9.5487	 +9.5190 
 Dollar/Sweden	SEK=		9.1395		 9.1165	  -0.35%		 +11.43%	 +9.1506	 +9.0802 
 Euro/Sweden	  EURSEK=	 10.3650		10.4009	 -0.35%		 +5.35%	  +10.4070	+10.3519 
	 
	 
	
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Turkish lira tumbles, dollar rallies	http//reut.rs/2vIIkjh 

Lira fall drags on emerging currencies http//reut.rs/2vK0ReN Turkey banks' capital being eroded by lira slump http//reut.rs/2MwjIQT

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