* Norway's crown, Canadian dollar gain
* Oil importers Turkey, India see currencies weaken
* China's industrial output slows, yuan falls
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tommy Wilkes
LONDON, Sept 16 (Reuters) - Currencies linked to the price
of oil rose on Monday after an attack on Saudi Arabian refining
facilities disrupted global oil supplies, while the Japanese yen
and Swiss franc strengthened as nervous investors sought safety.
Oil prices surged nearly a fifth at one point following the
strikes on two plants, which knocked out more than 5% of global
oil production Yemen's Iran-aligned Houthi group
claimed responsibility, but the United States blamed Iran.
The Norwegian crown surged as much as 0.7%, then settled at
8.964 crowns NOK=D3 against the dollar, up 0.3% on the day. It
was also 0.3% ahead versus the euro EURNOK=D3 .
The Canadian dollar rose 0.2% to C$1.3259 CAD=D3 . The
Russian rouble RUB= was also higher.
The currencies of oil importers such as Turkey TRY= and
India INR= underperformed.
Overall, the forex market reaction was limited. A bigger
concern was that a supply-side shock and growing geopolitical
tensions would damage an already fragile global economy, MUFG
analyst Lee Hardman said.
"Downside risks for the global economy would intensify if
geopolitical risks in the region continued to escalate, creating
a more unfavourable environment for high beta emerging market
and high yielding currencies," he said.
The Japanese yen, a common choice for investors seeking
shelter from market uncertainty, rose 0.2% to 107.85 yen per
dollar JPY=EBS . The Swiss franc rallied versus the euro but
was only up 0.1% at 1.0959 EURCHF=EBS by 0730 GMT, suggesting
some calm had returned to markets.
The U.S. dollar slipped 0.1% against a basket of currencies
.DXY . It was little changed versus the euro at $1.1079
EUR=EBS .
CHINA WEAKNESS
In China, data released on Monday showed industrial output
grew in August at its slowest pace in more than 17 years and
retail sales rose less than expected That added to
pressure for stimulus, and in offshore trade the Chinese yuan
CNH=EBS weakened 0.3% to 7.0653 per dollar.
The market focus on Monday was the Middle East, but
attention will also remain on central bank meetings in the
United States and Japan. Expectations the Federal Reserve would
cut interest rates on Wednesday had lessened; now investors are
sure they'll fall and are divided only over how much. FEDWATCH
A third of economists polled by Reuters expect the Bank of
Japan to announce ramped-up stimulus on Thursday. But sources
say it may be a close call -- policymakers will wait to assess
market reaction to the Fed's decision hours earlier.
Japanese markets are closed on Monday for a public holiday.
Sterling, which has soared over the past week on growing
investor confidence that a no-deal Brexit is off the table, fell
0.3% to $1.2466 GBP=D3 . It was down 0.5% against the euro at
88.970 EURGBP=D3 .