* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
Dec 19 (Reuters) - The dollar was down 0.1% in early London
trading on Thursday, little changed by U.S. President Donald
Trump's impeachment, while the Swedish crown edged higher when
the Riksbank became the first central bank to exit negative
rates territory.
Reaction to the Riksbank's decision to bring interest rates
up to 0% was limited because the action was already priced into
the market. Versus the euro, the crown was last up 0.2%
EURSEK=D3 . "The Riksbank is the prime example of a central bank flying
the white flag after years of expansionary monetary policy and
to have thrown in the towel in a state of exasperation,"
Commerzbank FX strategist Ulrich Leuchtmann wrote in a note to
clients.
Fritz Louw, FX strategist at MUFG, said that the rate hike
was interesting because the Swedish financial sector had not
been particularly damaged by Sweden's negative rate policy.
Although Sweden's inflation has risen recently, it is still
below the Riksbank's target. The dollar was down 0.1%. Trump's impeachment had limited
impact on currency markets.
Trump became the third U.S. president to be impeached. The
House of Representatives formally charged him with abuse of
power and obstruction of congress. The news did not affect risk appetite - the safe-haven
Japanese yen was flat against the dollar JPY=EBS - because the
Republican-controlled Senate is widely expected to acquit Trump,
leaving him in office.
"It's been relatively priced in that Trump was going to get
impeached in the House," said MUFG's Louw. "If the Senate
doesn't uphold it, I don't think there is any real reason for
the dollar to react massively to it."
The Australian dollar was up 0.4%, still boosted by a
surprise fall in unemployment, which is seen as reducing the
likelihood of further interest rate cuts AUD=D3 . The Norwegian crown was up 0.2% versus the euro EURNOK=D3 ,
before the Norges Bank monetary policy decision due at 9.00 GMT.
The rate is expected to remain unchanged at 1.5%.
The Norwegian crown was up 0.1% against the dollar NOK=D3
and flat against the euro EURNOK=D3 .
The euro was up 0.2% versus the dollar EUR=EBS , possibly
still boosted by data on Wednesday showing Germany's business
morale improving.