* Dollar eases but remains near recent highs
* New Zealand dollar rises on central bank comments
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(New throughout, updates rates and adds comments post-U.S.
market open; new byline, changes dateline, previous LONDON)
By Saqib Iqbal Ahmed
NEW YORK, Sept 26 (Reuters) - The dollar edged lower against
the euro on Thursday, giving up some of the sizeable gains from
the previous session, as the common currency recovered a little
after sinking to a 28-month low amid an increasingly bleak euro
zone economic outlook.
Increased political tensions on both sides of the Atlantic -
an unfolding effort by U.S. congressional Democrats to impeach
President Donald Trump and ongoing uncertainty linked to
Britain's divorce from the European Union - was, however, likely
to keep the greenback in demand, analysts said.
The euro was 0.16% higher against the dollar at $1.0959,
after falling as low as $1.0923, its weakest since May 2017.
Despite the opening of an impeachment inquiry into U.S.
President Donald Trump this week and mixed signals on a trade
deal, the dollar has remained resilient. It has been in demand
both as a safe-haven when investors become nervous, and also
when a deal with China - and a boost to the global economy -
seems within reach.
The U.S. dollar remains king and the barrage of headlines
from all over the map have only served to solidify that stance,
Brad Bechtel, global head of FX at Jefferies, said in a note.
The dollar index, which measures the greenback against a
basket of other currencies, was down 0.16% at 98.874. Earlier
this month it hit a high of 99.37, its strongest since May 2017.
On Wednesday the index jumped 0.7%, its largest one-day rise
in about three months.
"While there's no single reason to explain the dollar's
strength, multiple factors are in play," said Hussein Sayed,
analyst at broker FXTM.
"The UK is facing a political crisis with Brexit, the euro
zone is near a recession, bond yields across the developed
economies remain very depressed, and investors want a safe place
to park their money," he said.
"Despite the impeachment drama, the U.S. dollar continues to
cement its place as the major safe haven currency," he added.
Against the Japanese yen, which attracts investors in times
of uncertainty, the greenback fell 0.25% after the U.S. House
Intelligence Committee released a declassifed version of a
whistleblower report alleging that President Trump used his
office to solicit interference in the 2020 presidential election
from a foreign country. Meanwhile, the New Zealand dollar NZD= gained 0.73% after
the country's central bank governor said it was unlikely he
would need to use unconventional monetary policy. Sterling GBP= recovered from a sharp dive on Wednesday to
trade unchanged on the day, even as investors waited for
parliament's next step to break the Brexit impasse and as
opposition leaders gathered to discuss tactics.
Euro vs U.S. dollar https://tmsnrt.rs/2noVujW
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(Editing by Larry King and Kirsten Donovan)