FOREX--Dollar weakens as stocks gain; Norway's crown jumps

* Pound near seven-week low on Brexit worries, negative
rates
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Julien Ponthus
LONDON, May 18 (Reuters) - The dollar edged down on Monday
as optimism about the re-opening of economies hit by the
coronavirus pandemic boosted risk appetite, lifting commodity
currencies such as the Norwegian krone.
The gradual easing of lockdowns has fuelled optimism across
global markets despite fresh trade tensions between the United
States and China.
"Markets are quietly risk-on overnight", said Adam Cole,
chief currency strategist at RBC Capital Markets.
The dollar index drifted 0.05% lower at 100.28. The
Norwegian krone was lifted by rising oil prices, supported by
output cuts and signs of a recovery in demand.
Against the dollar, the krone NOK=D3 jumped 0.6% to
10.1860. Other commodity currencies also rose and gold gained
more than 1% to its highest in over seven years.
Gains in stocks also lifted other major currencies such as
the Australian dollar, which was up AUD=D3 half a percent at
$0.6446 and the euro EUR=D3 gained 0.05% to $1.0827.
Against the yen JPY= , the U.S. currency lost about 0.2%
at 107.20 per dollar after data showed Japan slipped into
recession for the first time since 2015. Policymakers are
bracing for the nation's worst postwar slump.
Investors were also looking to Purchasing Managers' Index
surveys due across major economies later this week for the next
insight into the outlook.
The pound stood at 89.35 pence per euro EURGBP= and was
under pressure at $1.2107 GBP= after a week-long deadlock over
a post-Brexit trade deal with the European Union and increasing
focus on the possibility of negative rates.
The Bank of England's chief economist, Andy Haldane, did not
rule such a move, in an interview with the Telegraph newspaper
published on Saturday.