* Dollar aided by Sino-U.S. trade deal, strong U.S. data
* U.S. service sector index rebounds more than expected
* Dollar near 3-month high on yen, gold near low end of
range
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Hideyuki Sano
TOKYO, Nov 6 (Reuters) - The dollar held the upper hand
against its rivals on Wednesday, particularly versus traditional
safe-haven currencies, on rising hopes for a U.S.-China trade
deal and a string of solid U.S. economic data.
The dollar index against major currencies .DXY was at
97.936, after rising 0.37% on Tuesday to 97.912.
Against the yen, the dollar traded at 109.16 yen JPY= ,
down 0.01% from late U.S. levels but near its October high of
109.285 and a three-month high of 109.25 hit on Oct. 30.
The Swiss franc CHF= changed hands at 0.9930 to the dollar
following its 0.5% fall the previous day, while gold XAU=
tumbled 1.73% on Tuesday and last stood at $1,484.1 per ounce,
near the lower end of its trading range over the past month.
The euro stood at $1.1075 EUR= , having dropped 0.49% on
Tuesday and was not far from a near three-week low of $1.10635
hit in U.S. trade.
Hopes that the Trump administration could roll back some of
tariffs it has imposed on goods from China as a part of a "phase
one" U.S.-China trade deal boosted risk sentiment in financial
markets. A survey on the vast U.S. service sector published on
Tuesday showed the business sentiment has improved in October
from a three-year low in September. The ISM non-manufacturing sector index rose to 54.7 from
52.6 in September, beating market expectations.
The rebound is a welcome sign for dollar bulls as a fall in
the index would have suggested that malaise in trade war-hit
manufacturers was infecting the service sector, too.
The data came after strong U.S. employment data on Friday.
"On top of Sino-U.S. trade issues, the market is reacting to
signs of U.S. economic strength at the moment," said Kyosuke
Suzuki, director of foreign exchange at Societe Generale.
The positive mood spilled over to the risk-sensitive
Australian dollar, which changed hands at $0.6894 AUD=D4 . It
was little changed on the day but has maintained gains of 3.4%
since hitting a 10-1/2-year low on Oct. 2.
The offshore yuan traded at 7.0005 yuan per dollar CNH= ,
after having risen to three-month high of 6.9867 to the dollar
on Tuesday on rising trade deal hopes.
The currency has gained 2.8 percent from its record low in
the offshore trade marked in early September.