FOREX-Dollar clings to one-week high after weeks of losses

* Fiscal stalemate in Congress, US-Sino tensions breath
strength
into dollar
* German ZEW survey expected to weaken in August
* Oil currencies flourish as oil prices rise
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Olga Cotaga
LONDON, Aug 11 (Reuters) - The U.S. dollar maintained its
gains on Tuesday after rising to a one-week high against the
euro as U.S.-China tensions and a stalemate in the U.S. Congress
over fiscal stimulus supported safe-haven assets.
Congressional leaders and Trump administration officials
said on Monday they were ready to resume negotiations on a
coronavirus aid deal. It was unclear whether they could bridge
their differences. Meanwhile, China imposed sanctions on 11 U.S. citizens,
including Republican lawmakers, following Washington's sanctions
on Hong Kong and Chinese officials. And U.S. Treasury Secretary Steven Mnuchin said companies
from China and other countries that do not comply with
accounting standards will be delisted from U.S. stock exchanges
as of the end of 2021. Market response to the U.S.-China conflict has been limited,
but analysts say the confrontations have longer-term
implications.
Euro/dollar was last neutral at $1.1736 EUR=EBS , having
fallen to $1.1722 earlier, its weakest since Aug. 4. Before
that, the dollar had fallen for seven straight weeks, and it was
due for a short-term corrective bounce, traders said.
"The market remains in the expectation that everything will
turn out for the best in the dispute," Commerzbank currency
analyst Antje Praefcke said. But "an agreement has probably
already been priced in accordingly, which means that the dollar
has hardly any more upside potential."
"The euro does not really have that much to offer these
days, either ... The bottom line is that with $1.19 we probably
have seen the highs in euro/dollar for the time being, but at
the same time there are no good reasons for levels below $1.16,"
Praefcke said.
Market participants will be watching for the German economic
Zew survey at 0900 GMT, which will show how Europe's biggest
economy has fared in August. Economists polled by Reuters
expects that sentiment and conditions weakened.
The euro has been bolstered recently by views that the
continent was outperforming the United States and handling the
coronavirus pandemic much better.
Elsewhere, the Turkish lira stayed near Friday's record low
on concerns about the country's dwindling foreign-exchange
reserves, leading to expectations the central bank will take
more decisive action to stem its fall.
The lira was quoted at 7.2785 per dollar TRYTOM=D3 , just
above Friday's record low of 7.3650.
The Norwegian crown, on the other hand, has flourished as
oil prices rose, becoming the best performer so far this week
alongside the Canadian dollar and the Russian rouble, according
to MUFG analysts.
The crown was last up 0.3% at 9 to the dollar NOK=D3 ,
boosted by Monday's central bank report that showed Norges Bank
was one of the least dovish G10 central banks. The Canadian
dollar held at $1.33 CAD=D3 .