* Euro rises as dollar falls after rising overnight
* Swedish crown plunges vs euro, dollar to multi-year lows
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Recasts, adds new quote and fresh context)
By Olga Cotaga
LONDON, Oct 9 (Reuters) - Currencies linked with greater
investor risk appetite, such as the Australian dollar, jumped on
Wednesday after Bloomberg reported China remained open to
signing a partial trade deal with the United States despite
being put on the tech blacklist. The U.S. government has widened its trade blacklist to
include some of China's top artificial intelligence start-ups,
punishing Beijing for its treatment of mostly Muslim minorities
and ratcheting up tensions ahead of high-level trade talks in
Washington this week.
The Australian dollar, a global risk barometer, was last up
0.3% at $0.6744 AUD=D3 and the New Zealand dollar rose 0.4% to
$0.6319 NZD=D3 .
China's yuan was up 0.5% at 7.1308 against the dollar in the
offshore trading CNH=EBS .
The euro was up 0.3% at $1.09785 EUR=EBS . The index that
tracks the dollar against a basket of six other currencies was
down 0.1% at 99.007 .DXY .
"Risk is looking reasonably better, but anyone who is
trading the trade war knows that the impact of good news will be
fading," said Jeremy Stretch, head of G10 FX strategy at CIBC
Capital Markets.
"I think it pays off to be sceptical in terms of
expectations of something exceptional happening during the
U.S.-China trade talks this week," Stretch said.
The biggest move in the foreign exchange market, however,
was an early morning plunge in the Swedish crown, both against
the euro and the dollar ,on concerns the U.S.-China conflict
over trade and foreign policy was nowhere near a resolution and
was increasingly damaging the global economy.
Sweden's open economy makes the crown vulnerable to global
growth dynamics and therefore to the trade dispute between the
world's two biggest economies, which has hurt growth in the two
years since U.S. President Donald Trump ignited the trade war.
The Swedish crown was last steady, after falling earlier to
a 10-year low of 10.9230 against the euro and a 17-year low of
9.9639 against the dollar EURSEK=D3 SEK= .
"It's a remarkable move," said Stephen Gallo, European head
of FX strategy at BMO Capital Markets. "You cannot get a clearer
trend here. The fall reflects deepening worsening global
outlook."
Gallo expects the crown to fall to 11 against the common
currency, close to levels not seen since the financial crisis.
Sweden's competitiveness as an exporter led to the crown's
decline, he said.
The euro was a sell against the dollar, though, since it was
likely to maintain its status as a safe-haven currency and U.S.
investors were likely to keep their dollars at home, he added.
Chinese Vice Premier Liu He is due to arrive this week in
Washington for trade talks. He is expected to meet U.S. Trade