* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Saikat Chatterjee
LONDON, Dec 4 (Reuters) - The dollar held firm above a
one-month low against its rivals on Wednesday as uncertainty
about the progress of trade talks between the United States and
China fuelled demand for the greenback.
The dollar had come under some pressure this week as some
decent eurozone data and surprisingly strong China survey
figures raised hopes that the global economy will pick up
traction next year and boost demand for non-U.S. currencies.
The greenback fell 1% in the first two days of the week,
taking it to a one-month low versus its rivals DXY before the
latest headlines rekindled some safe-haven demand.
U.S. President Donald Trump's statement that he had "no
deadline" for an agreement with China hurt sentiment as global
trade frictions have already weakened world growth, with many
economies struggling to find their footing.
"There is so much uncertainty with regards to trade and the
economic outlook, and in that environment, investors are
flocking to the currency which offers the highest interest rate
and that is the dollar," said Morten Lund, a senior FX
strategist at Nordea.
In early trading on Wednesday, the dollar edged up to
97.764, above a low of 97.644 hit on Tuesday, its lowest level
since Nov. 11.
Market analysts said the dollar could only weaken
substantially if U.S. economic data showed a sharp decleration
and expectations of rate cuts grew sharply. Money market futures
are pointing to a rate cut of one quarter point by next July.
The Australian dollar was the biggest loser against the
dollar AUD=D3 , falling 0.5% versus the greenback after some
disappointing third quarter growth data and retracing a
cumulative gain of 1.5% in the last two sessions. AUD/
Elsewhere, the yen JPY=EBS stood at 108.60 yen versus the
dollar on Wednesday, close to its strongest since Nov. 22.
The Swiss franc CHF=EBS was quoted at 0.9875 versus the
dollar, near its highest level since Nov. 4.
Both the Japanese and Swiss currencies tend to be bought as
safe-havens during times of uncertainty.