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FOREX-Dollar edges up on trade, political worries


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* U.S. consumer confidence rises to highest since November

* Benchmark 10-year U.S. yields fall to 19-month lows

* Euro dips but holds above 2-year lows after EU elections

* Yen steady as Trump talks trade in Tokyo

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh (Updates market action, adds quote)

By Richard Leong

NEW YORK, May 28 (Reuters) - The dollar edged higher against a basket of currencieson Tuesday, lifted by trade and political worries and a strong rise in U.S. consumerconfidence, even as longer-dated U.S. bond yields dropped to 19-month lows.

The euro slipped as investors were relieve that pro-Europe parties won a majority ofEuropean parliamentary seats, but they remained uneasy about the future of the economicbloc as eurosceptic and right-wing parties gained seats. urn:newsml:reuters.com:*:nL8N234284

Currency trading remained light even as U.S. and U.K.-based traders returned fromholidays.

"It's a bit of a flight-to-quality environment so that's benefitting the dollar abit," said Chuck Tomes, associate portfolio manager at Manulife Asset Management inBoston.

The greenback strengthened further after the Conference Board said its gauge on U.S.consumer confidence rose to 134.1 in May, the strongest since November. Analysts hadforecast a reading of 130.00. urn:newsml:reuters.com:*:nL2N2340JX

In late U.S. trading, an index that tracks the greenback against the euro, yen,sterling and three other currencies =USD was 0.19% higher at 97.919.

The dollar index reached a two-year peak at 97.908 last week.

Earlier, benchmark 10-year Treasury yields US10YT=RR fell to 2.264% after U.S.President Donald Trump signaled the United States and China were far from a trade deal.It was the lowest 10-year yield since October 2017. Investors have been loading up onsafe-haven U.S. government debt due to trade worries and political uncertainty. urn:newsml:reuters.com:*:nL4N22Z2GD

Italian Deputy Prime Minister Matteo Salvini, whose far-right League triumphed inEuropean elections on Sunday, said the European Commission could fine Italy 3 billioneuros for breaking EU debt and deficit rules, a comment that weighed on the singlecurrency. urn:newsml:reuters.com:*:nR1N1XD011urn:newsml:reuters.com:*:nL8N23336E

The euro has recovered, holding steady at $1.1169EUR=EBS and 122.285 yenEURJPY=EBS .

The euro hit a near 23-month low of $1.11055 last week.

European leaders now meet in Brussels to begin the process of filling a number of topEU posts, from the head of the European Commission to the European Central Bank.

The yen JPY=EBS was little changed at 109.475 per dollar as U.S. President DonaldTrump said on Monday he expected Japan and the United States to announce a tradeagreement "probably in August." urn:newsml:reuters.com:*:nL4N23409L ========================================================

Currency bid prices at 2:28PM (1828 GMT) Description RIC Last U.S. Close Pct YTD Pct High Bid Low Bid

Previous Change Change

Session Euro/Dollar EUR= $1.1171$1.1196 -0.22% -2.60% +1.1202 +1.1163 Dollar/Yen JPY= 109.4600 109.5000 -0.04% -0.73% +109.6200 +109.2200 Euro/Yen EURJPY= 122.27 122.57 -0.24% -3.13% +122.7000 +122.2100 Dollar/Swiss CHF= 1.0078 1.0037 +0.41% +2.69% +1.0098 +1.0035 Sterling/Dollar GBP= 1.2665 1.2677 -0.09% -0.72% +1.2701 +1.2655 Dollar/Canadian CAD= 1.3483 1.3441 +0.31% -1.13% +1.3489 +1.3433 Australian/Doll AUD= 0.6925 0.6917 +0.12% -1.76% +0.6935 +0.6917 ar Euro/Swiss EURCHF= 1.1260 1.1232 +0.25% +0.05% +1.1278 +1.1225 Euro/Sterling EURGBP= 0.8816 0.8830 -0.16% -1.87% +0.8841 +0.8806 NZ NZD= 0.6543 0.6543 +0.00% -2.59% +0.6558 +0.6543 Dollar/Dollar Dollar/Norway NOK= 8.7053 8.7040 +0.01% +0.77% +8.7125 +8.6755 Euro/Norway EURNOK= 9.7254 9.7477 -0.23% -1.82% +9.7530 +9.7115 Dollar/Sweden SEK= 9.5777 9.5792 -0.22% +6.85% +9.5876 +9.5398 Euro/Sweden EURSEK= 10.7019 10.7260 -0.22% +4.27% +10.7305 +10.6740

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GRAPHIC-Euro vs U.S. dollar   https://tmsnrt.rs/2Wfu7tv
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(Additional reporting by Tommy Wilkes in LONDON Editing by David Gregorio and Lisa Shumaker) ((richard.leong@thomsonreuters.com; +1 646 223 6313; Reuters Messaging:richard.leong.thomsonreuters.com@thomsonreuters.net; Twitter @RichardLeong2))






This article appears in: Politics , Stocks , World Markets , Economy
Referenced Symbols: EFX ,



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