* Graphic: World FX rates in 2019
LONDON, Sept 20 (Reuters) - The dollar edged lower on Friday and
was headed for a third straight week of losses as expectations of a
breakthrough in trade tensions between Washington and Beijing fuelled
a revival in risk appetite.
The losses came after the Federal Reserve cut interest rats by a
quarter-point rate, compounded by a spike in overnight U.S. repo rates
this week, which cut into demand for dollars.
Other major central banks, including the Bank of England, the Bank
of Japan and the Swiss National Bank, left rates unchanged this week,
disappointing some dollar bulls.
"Other central banks are not in easing mode as the Fed has
been this week and hopes of a breakthrough in trade talks between the
United States and China is also dampening some of the safe-haven
appeal of the dollar," said Thu Lan Nguyen, a foreign exchange
analyst at Commerzbank.
The dollar slipped 0.1% against an index of other currencies
to 98.18, on track for its third consecutive weekly drop.
Markets focussed on U.S.-China trade talks in Washington before
high-level discussions next month. Some signs of progress were
"What we're looking at is brewing central-bank
divergence," said Chris Weston, head of research at brokerage
Pepperstone Group in Melbourne. "We're starting to see signs of
that resonating in currency markets."
Sterling was the biggest gainer. European Commission President
Jean-Claude Juncker said he thought Brussels could reach agreement
with Britain on its departure from the European Union.
Sterling rose 0.5% to a two-month high against the dollar
and to 87.87 pence against the euro , a four-month high .
The Australian dollar rose to around $0.6799 but remained near
the three-week low it reached on Thursday. The New Zealand dollar
fell to $0.6285, its weakest since Sept. 3.
(Reporting by Saikat Chatterjee; editing by Larry King)
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