FOREX-Trade tensions boost yen, yuan weakest since Nov

(New throughout, updates trading and comments to U.S. market
open, new byline, changes dateline, previous LONDON)
By Karen Brettell
NEW YORK, May 17 (Reuters) - The safe-haven Japanese yen
gained on Friday and the offshore Chinese yuan weakened as
escalating trade tensions between the United States and China
raised concerns about global growth.
The United States must show sincerity if it is to hold
meaningful trade talks, China said on Friday, after U.S.
President Donald Trump dramatically raised the stakes with a
potentially devastating blow to Chinese tech giant Huawei.
“Rhetoric from both sides is getting more heated, making a
US-China deal seem a long way off,” Win Thin, global head of
currency strategy at Brown Brothers Harriman in New York, said
in a report.
“At this point, this means there will be no high-level
negotiations between the two until a potential Trump-Xi
(Jinping) meeting at the G20 meeting in late June. This means
the next round of tariffs will likely come into play, signaling
further escalation and making a deal that much harder,” Thin
said.
The world's two largest economies are locked in an
increasingly acrimonious trade dispute that has seen them level
escalating tariffs on each other's imports in the midst of
negotiations.
The Chinese yuan fell as far as 6.949 against the dollar on
Friday, its weakest level since Nov. 30.
China's central bank will use foreign exchange intervention
and monetary policy tools to ensure the yuan does not weaken
past the 7-per-dollar key level in the immediate term, three
people familiar with the central bank's thinking said.
The Australian dollar AUD= dropped to its lowest level
since Jan. 3 on the escalating trade tensions. The euro gave back earlier losses against the dollar after
the White House said that President Donald Trump is delaying a
decision by up to six months on whether to impose tariffs on
imported cars and parts to allow for more time for trade talks
with the European Union and Japan. The single currency has been hurt this week by Italian
Deputy Prime Minister Matteo Salvini's comments that European
Union rules harm the country.
Salvini said on Thursday that he would "tear apart" rules
that are "strangling" Italy if his party scores well in the
European parliamentary elections next week. Sterling hit a four-month low on Friday after cross-party
Brexit talks collapsed and concern grew about the impact Prime
Minister Theresa May's likely resignation would have on
Britain's exit from the European Union. Currency bid prices at 9:04AM (1304 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1172 $1.1172 +0.00% -2.59% +1.1184 +1.1159
Dollar/Yen JPY= 109.5800 109.8400 -0.24% -0.62% +110.0300 +109.5100
Euro/Yen EURJPY= 122.44 122.73 -0.24% -2.99% +122.9600 +122.2900
Dollar/Swiss CHF= 1.0101 1.0098 +0.03% +2.92% +1.0113 +1.0086
Sterling/Dollar GBP= 1.2750 1.2795 -0.35% -0.05% +1.2807 +1.2737
Dollar/Canadian CAD= 1.3511 1.3457 +0.40% -0.92% +1.3512 +1.3456
Australian/Doll AUD= 0.6880 0.6892 -0.17% -2.40% +0.6897 +0.6873
ar
Euro/Swiss EURCHF= 1.1287 1.1284 +0.03% +0.28% +1.1293 +1.1270
Euro/Sterling EURGBP= 0.8762 0.8730 +0.37% -2.47% +0.8766 +0.8728
NZ NZD= 0.6527 0.6534 -0.11% -2.83% +0.6546 +0.6525
Dollar/Dollar
Dollar/Norway NOK= 8.7652 8.7440 +0.24% +1.46% +8.7779 +8.7399
Euro/Norway EURNOK= 9.7961 9.7821 +0.14% -1.13% +9.8012 +9.7764
Dollar/Sweden SEK= 9.6251 9.6370 -0.14% +7.38% +9.6536 +9.6178
Euro/Sweden EURSEK= 10.7553 10.7703 -0.14% +4.79% +10.7888 +10.7490