* Euro dips but remains above 2-year lows
* Yen rebounds with Trump in Tokyo
* Sterling still stuck below $1.27 on Brexit worries
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Adds new analyst quotes, chart, Bitcoin price)
By Tommy Wilkes
LONDON, May 28 (Reuters) - The euro dipped on Tuesday as
investors nervous about trade tensions bought into the
safe-haven dollar and fretted that political risks in Europe
remain high, even though pro-Europe parties won a majority of
European parliamentary seats.
Remarks by two euro zone officials that the European
Commission was likely to fine Italy on June 5, because its
rising debt and structural deficits break European Union rules,
also weighed on the single currency. Pro-Europe parties kept a majority of seats in last week's
European parliamentary elections. Support grew for eurosceptic
and right-wing parties, but not as much as investors had feared.
European leaders now meet in Brussels to fill in a number of
top EU posts, from the head of the European Commission to the
European Central Bank.
Currency markets remain in tight ranges without new
catalysts and amid uncertainty over how trade tensions between
the United States and China are affecting the world's major
economies.
"Until there is more clarity on the external trade story or
perhaps the Fed engineers a weaker dollar, expect EUR/USD to
stay pressured," ING analysts said in a note.
The euro slipped 0.1% to $1.1179 EUR=EBS . The single
currency's initial gains after the EU election results were
fleeting.
The dollar rose 0.2% against a basket of peers, its index
touching 97.791 .DXY . It remains off a two-year high of 98.371
hit on Thursday.
The yen rose 0.3% to 109.26 yen JPY= . U.S. President
Donald Trump, who is visiting Japan, is expected to put pressure
on Tokyo to reduce the nation's large trade surplus with the
United States.
Trump said on Monday he expected the two countries to be
"announcing some things, probably in August, that will be very
good for both countries" on trade.
Elsewhere, the Australian dollar gained to $0.6923 AUD=D3 ,
about 0.75% above Thursday's four-month low.
The Swedish crown rallied 0.3% to 10.689 crowns per euro
EURSEK=D3 despite deteriorating consumer and manufacturing
sentiment, as Swedish inflation was also seen to be rising in 12
months from previous expectations. Sterling slipped 0.1% to $1.2671 GBP=D3 as candidates to
succeed British Prime Minister Theresa May laid out some of
their Brexit plans.
"The pound fell most notably yesterday and the strong
showing by the Brexit Party has fuelled speculation of a shift
toward a Hard Brexit departure from the EU on 31st October,"
MUFG analysts said, referring to the Brexit Party topping the
polls in Britain at the European parliamentary election.
Bitcoin, the world's biggest cryptocurrency, stabilised
after another jump higher over the weekend to one-year highs.
The price of Bitcoin stood at $8,720 BTC=BTSP after
hitting as high as $8,939. The virtual currency has rocketed
136% so far in 2019.
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Euro vs U.S. dollar https://tmsnrt.rs/2Wfu7tv
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(Editing by Larry King and Alexandra Hudson)