- Yen falls to six-month low against dollar
- Record Chinese trade surplus stokes U.S.-China tariff concern
- Powell's upbeat remarks add to greenback's strength
- Fed to release U.S. monetary policy report at 11 a.m.
(Updates market action, changes dateline, previous LONDON)
The dollar rose on Friday to a two-week peak against a basket of currencies after data showing a record Chinese trade surplus, which may add fuel to U.S.-China trade tensions, spurring more investors to pile into the safety of the greenback.
Upbeat comments on the U.S. economy from Federal Reserve Chairman Jerome Powell also stoked demand for the dollar, analysts said.
The yen fell to a six-month trough against the greenback. The euro and yuan also weakened against the U.S. currency.
"It's hard to see what's going to dethrone the dollar," said Paresh Upadhyaya, director of currency strategy at Amundi Pioneer Investments in Boston.
"Trade war concerns amplify the downside risk on global growth. That tends to be positive for the dollar and puts a drag on other currencies," Upadhyaya said.
At 10:09 a.m. (1409 GMT), an index that tracks the dollar against the yen, euro and four other currencies .DXY rose 0.2 percent to 94.988 after touching 95.241 earlier, which was the highest since June 29.
The yen JPY= hit a six-month low at 112.79 yen per dollar before recovering to 112.51 yen.
The euro EUR= fell to a nine-day low at $1.1610, while the yuan fell half a percent in offshore markets to as low as 6.7250, near an 11-month trough of 6.7326 CNH= on July 3.
U.S. Treasury Secretary Steven Mnuchin said on Thursday that the United States and China might reopen trade talks, briefly easing concerns about the trade dispute.
But data showing China's trade surplus with the United States swelled to a record in June could further inflame tensions. U.S. President Donald Trump this week pledged to impose tariffs on $200 billion more in Chinese imports. Beijing has vowed to retaliate.
Escalating trade tensions have not dented the U.S. economy, which on is its second longest expansion on record.
On Thursday, Fed chief Powell said in a Marketplace radio interview he believes the U.S. economy remains in a "good place," with recent government tax and spending programs likely to boost growth for perhaps three years.
"Powell's comments have provided more upward pressure on the dollar overnight into this morning," Upadhyaya said.
The Fed will release its semiannual report on monetary policy at 11 a.m. (1500 GMT) before Powell's testimony before Congress next Tuesday and Wednesday.
======================================================== Currency bid prices at 10:16AM (1416 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1646 $1.1671 -0.21% -2.92% +1.1675 +1.1613 Dollar/Yen JPY= 112.4900 112.5500 -0.05% -0.16% +112.7900 +112.4300 Euro/Yen EURJPY= 131.02 131.31 -0.22% -3.08% +131.5200 +130.8200 Dollar/Swiss CHF= 1.0042 1.0022 +0.20% +3.07% +1.0068 +1.0016 Sterling/Dollar GBP= 1.3172 1.3204 -0.24% -2.52% +1.3209 +1.3104 Dollar/Canadian CAD= 1.3174 1.3151 +0.17% +4.75% +1.3208 +1.3152 Australian/Doll AUD= 0.7389 0.7406 -0.23% -5.28% +0.7422 +0.7369 arEuro/Swiss EURCHF= 1.1695 1.1696 -0.01% +0.05% +1.1708 +1.1659 Euro/Sterling EURGBP= 0.8838 0.8835 +0.03% -0.51% +0.8867 +0.8836 NZ Dollar/Dolar NZD= 0.6742 0.6783 -0.60% -4.85% +0.6786 +0.6727 Dollar/Norway NOK= 8.1439 8.1051 +0.48% -0.77% +8.1697 +8.1045 Euro/Norway EURNOK= 9.4846 9.4640 +0.22% -3.70% +9.4940 +9.4501 Dollar/Sweden SEK= 8.9203 8.8687 +0.42% +8.76% +8.9390 +8.8590 Euro/Sweden EURSEK= 10.3900 10.3470 +0.42% +5.60% +10.3935 +10.3381 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates in 2018 http://tmsnrt.rs/2egbfVhU.S. trade with China http//tmsnrt.rs/2KAT34a China trade with US http//reut.rs/2HjTuSw
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