* Euro records worst week vs dollar since late September
* Sterling posts biggest weekly fall since October
* Mystery buyer keeps the single currency supported above $1.13
* Chinese markets shut for Lunar New Year hold down volatility
* Graphic: World FX rates in 2019
(Updates market action to late New York trading)
By Richard Leong
NEW YORK, Feb 8 (Reuters) - The dollar edged higher against a
basket of currencies on Friday, ending its strongest week in six
months, as traders piled into the greenback in a safe-haven move on
worries about a weakening global economy.
The euro hovered at a two-week low with support at $1.13. The
single currency still posted its steepest weekly drop against the
dollar in over four months in the wake of data that showed an economic
slowdown in Europe was spreading.
"The rally that propelled the dollar broadly higher last year
has enjoyed renewed life with U.S. growth remaining solid while peers
abroad lose momentum," said Joe Manimbo, senior market analyst at
Western Union Business Solutions in Washington.
An index that tracks the greenback versus the euro, yen, sterling
and three other currencies was up 0.13 percent at 96.634.
On the week, the ICE dollar index was up 1.1 percent, its biggest
weekly increase since a 1.28 percent jump in the week of Aug. 10, 2018.
The euro was down 0.13 percent at $1.13230 for a weekly decline of
1.1 percent, which was its biggest weekly fall since late September.
The European Commission cut its growth and inflation forecasts on
Thursday as downside surprises to German and Spanish industrial orders
fueled worries about an accelerating slowdown.
Those figure have weighed on local bond markets. Core European
government debt yields touched their lowest in over two years.
Benchmark German yields were just 10 basis points away from zero
U.S. yields also fell on the week, holding above the lows of their
recent trading range.
With Chinese markets closed for Lunar New Year this week, market
For example, implied volatility in the euro, or expected swings in
the single currency in a month, fell earlier this week to its
lowest level since Dec. 2017 before rebounding, according to Refinitiv data.
Anxieties about the global economy were compounded by comments
from U.S. President Donald Trump indicating he did not plan to meet
with Chinese President Xi Jinping before a March 1 deadline to achieve
a trade deal.
That helped the perceived safe-haven currencies such as the
Japanese yen and the Swiss Franc hold up against the dollar. The
dollar was last at 109.785 yen
, while the greenback was down 0.23 percent at 1.00015 Swiss franc.
Sterling was marginally lower at $1.2938 for its biggest weekly
drop since October. Traders expect the pound to remain volatile
because of the uncertainty surrounding Brexit.
Currency bid prices at 3:19PM (2019 GMT)
Description RIC Last U.S. Close Pct Change
YTD Pct High Bid Low Bid
Euro/Dollar EUR= $1.1323 $1.1340 -0.15%
-1.27% +1.1352 +1.1320
Dollar/Yen JPY= 109.7900 109.8000 -0.01%
-0.43% +109.8900 +109.6600
Euro/Yen EURJPY= 124.32 124.52 -0.16%
-1.51% +124.6900 +124.1900
Dollar/Swiss CHF= 1.0001 1.0021 -0.20%
+1.91% +1.0027 +0.9996
Sterling/Dollar GBP= 1.2937 1.2953 -0.12%
+1.41% +1.2975 +1.2922
Dollar/Canadian CAD= 1.3263 1.3306 -0.32%
-2.74% +1.3328 +1.3232
Australian/Doll AUD= 0.7083 0.7099 -0.23%
+0.48% +0.7105 +0.7061
Euro/Swiss EURCHF= 1.1322 1.1364 -0.37%
+0.60% +1.1370 +1.1323
Euro/Sterling EURGBP= 0.8750 0.8757 -0.08%
-2.60% +0.8765 +0.8743
NZ NZD= 0.6745 0.6746 -0.01%
+0.42% +0.6766 +0.6730
Dollar/Norway NOK= 8.6322 8.5946 +0.44%
-0.08% +8.6431 +8.5869
Euro/Norway EURNOK= 9.7739 9.7471 +0.27%
-1.34% +9.7909 +9.7322
Dollar/Sweden SEK= 9.2710 9.2612 -0.02%
+3.43% +9.2846 +9.2425
Euro/Sweden EURSEK= 10.4987 10.5005 -0.02%
+2.29% +10.5150 +10.4870
GRAPHIC-G10 FX - YTD
(Reporting by Richard Leong in NEW YORK Additional reporting by
Saikat Chatterjee in LONDON; Vatsal Srivastava in SINGAPORE; Editing
by Dan Grebler and Grant McCool)
((email@example.com; +1 646 223 6313; Reuters