* Euro falls to near 3-year low, slips below key $1.08 level
* Norway's crown plummets to 19-year low vs dollar
(Updates to U.S. afternoon, adds graphic on dollar positions)
By Saqib Iqbal Ahmed
NEW YORK, Feb 18 (Reuters) - The dollar rose on Tuesday to
its highest in nearly three years against the euro, which was
pressured by a German survey showing slumping investor
confidence in Europe's largest economy.
The euro was 0.38% lower against the dollar at $1.0793, its
first fall below the $1.08 level since April 2017.
On Tuesday, Germany's ZEW research institute said in its
monthly survey that investors' mood deteriorated far more than
expected in February, on worries the coronavirus would dampen
world trade. The survey added to expectations the German economy will
lose more momentum in the first half as slumping exports keep
manufacturers mired in a recession.
"The scale of the erosion in confidence potentially sets the
stage from similarly poor results Friday when Germany and the
euro zone issue preliminary PMI surveys," said Joe Manimbo,
senior market analyst at Western Union Business Solutions in
Washington.
Some economists fear the coronavirus, which started in China
and is impacting both the global supply chain and Chinese
demand, could result in weaker German growth in the first
quarter.
The euro has lost around 3.7% of its value against the U.S.
dollar this year, its worst year-to-date performance in five
years.
Poor euro area data has boosted speculation that monetary
policy will remain looser for longer than previously expected.
The U.S. economy has proved more resilient than the rest of
the world, keeping the dollar at 4-1/2 month highs against a
basket of currencies =USD . Other safe-haven assets such as the
Swiss franc and Japanese yen have also benefited.
"Only when the virus issue dies down and the impact from all
the stimulus around the world starts to become apparent, will we
see downward pressure on the USD," Brad Bechtel, managing
director, Jefferies in New York, said in a note.
The Federal Open Market Committee is expected to issue
minutes from its Jan. 28-29 meeting on Wednesday.
Speculators increased their net long dollar position in the
latest week, according to calculations by Reuters and U.S.
Commodity Futures Trading Commission data released on Friday.
offshore-traded yuan fell 0.3% to an eight-day low
of 7.0109 against the dollar CNH= .
Norway's crown, closely correlated with global growth and
trade, plunged to a 19-year low of 9.3378 against the U.S.
dollar. NOK=D3 , down 0.8% on the day.
Against the greenback, the Australian dollar AUD= was 0.4%
lower, while the New Zealand dollar NZD= fell 0.78%. The
risk-sensitive currencies were jolted lower as a production
warning from Apple AAPL.O highlighted the mounting economic
costs of the coronavirus and spooked investors across Asia.
Sterling was little changed on the day at $1.2997 after
Britain's new finance minister said he would deliver the budget
as planned in three weeks, while a broadly weaker euro also
supported the British currency.
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
Graphic: U.S. dollar net speculative position https://tmsnrt.rs/2vMTCpf
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