* U.S. House Speaker announces launch of impeachment inquiry
* Yen, Swiss franc near highest levels in a few weeks
* Trump steps up rhetoric on China, cools trade deal hopes
* Pound buoyed after Supreme Court ruling, outlook unclear
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Hideyuki Sano
TOKYO, Sept 25 (Reuters) - The dollar wobbled on Wednesday,
as the U.S. House of Representatives moved to open a formal
impeachment inquiry against President Donald Trump while weak
U.S. consumer confidence data heightened worries over the
Sino-U.S. trade row.
Following reports Trump sought foreign help to smear
Democratic presidential front-runner Joe Biden, House Speaker
Nancy Pelosi announced the House would initiate a formal
inquiry, saying Trump appeared to have undermined national
security and violated the U.S. Constitution. The yen held firm at 107.09 yen to the dollar JPY= , having
hit a two-week high of 106.96 the previous day. The safe-haven
Swiss franc also rose to near three-week high of 0.9845 franc
per dollar on Tuesday and last stood at 0.9859 CHF= .
The euro, which was battered by weak euro zone economic data
earlier this week, stood at $1.1017 EUR= , off Monday's low of
$1.0966.
Trump promised on Tuesday to release a transcript of his
phone call with Ukrainian President Volodymyr Zelenskiy amid
reports he withheld nearly $400 million in U.S. aid to Ukraine
as leverage to get Zelenskiy to launch a probe that would damage
Biden.
Fighting a political battle at home, Trump's rhetoric on
China turned harsh as he delivered a stinging rebuke to
Beijing's trade practices at the United Nations General
Assembly, saying he would not accept a "bad deal" in U.S.-China
trade negotiations. "Trump's speech was full of sensitive words for China -
trade practices, currencies, freedom of religion and so on. It
is not hard to imagine it will irritate China," said Daisuke
Uno, chief strategist at Sumitomo Mitsui Bank.
"In the past China has reacted to U.S. pressure on trade by
bringing down the yuan. It appears we are having that settings
again," he said.
The offshore Chinese yuan traded flat at 7.1051 per dollar
CNH= .
The dollar was also undermined by data showing U.S. consumer
confidence USCONC=ECI fell by the most in nine months in
September, far more than expected. "Net-net, consumer confidence plunged in September which
counts as a big surprise that may sidetrack the economic
expansion that is relying on consumer spending to fuel growth,"
said Chris Rupkey, chief financial economist at MUFG Bank in New
York.
"This unwelcome news on souring consumer spirits is a
startling new development that could even bring more rate cuts
later this year from the Federal Reserve," he said.
Elsewhere, the British pound was well-bid after the UK
Supreme Court ruled that Prime Minister Boris Johnson's decision
to suspend parliament for five weeks was unlawful in a further
blow to his ambition to pull Britain out of European Union next
month with or without a deal. Still, market players saw no signs of a sustainable rebound
as the events further deepened the uncertainty investors now
attach to the currency.
Sterling changed hands at $1.2492 GBP=D4 , not far from
two-month high of $1.2582 set last week.