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FOREX-Dollar gains as stocks rebound off lows

Dice with pencil on graph paper

* Dollar index up 0.2 pct but still off Dec. 14 high

* US government shutdown, Fed rate concerns weigh

By Karen Brettell

Wall Street opened higher after a few punishing sessionsthat left the S&P 500 on the brink of bear market territory onworries over slowing growth and the drama in the White House. .N

"There is a modest sense of temporary stability returning toequity markets," Nick Bennenbroek, a currency strategist atWells Fargo in New York said in a report.

"That said, trading conditions remain light and investorsremain somewhat cautious, watching closely for more U.S.political headlines," Bennenbroek said.

On Tuesday, U.S. President Donald Trump said the partialshutdown of the federal government was going to last until hisdemand for funds to build a wall on the U.S.-Mexico border ismet.

Trump also expressed confidence in Treasury Secretary StevenMnuchin, but repeated his criticism that the Fed has raisedinterest rates too quickly. The dollar has been hit in recentweeks by investor fears that rate hikes will hurt the U.S.economy as international growth sputters.

"There's an endless laundry list of concerns: Trump beratingthe Fed, Trade Wars, China slowing growth, Brexit casualties, EUslowdown. But when you factor in a downturn in the U.S. economy,this is when things get ugly," Stephen Innes, head of tradingAPAC at Oanda in Singapore said in a note.

The dollar index against a basket of six major currencies .DXY gained 0.20 percent to 96.747. It was down from a1-1/2-year high of 97.711 on Dec. 14.

Liquidity was thin after major markets were closed onTuesday for the Christmas holiday. Markets in Britain, Germanyand France remained closed on Wednesday.

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Currency bid prices at 9:26AM (1426 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session Euro/Dollar EUR= $1.1389$1.1361 +0.25% -5.06% +1.1421 +1.1351 Dollar/Yen JPY= 110.5600 110.2700 +0.26% -1.87% +110.7000 +110.1500 Euro/Yen EURJPY= 125.96 125.67 +0.23% -6.82% +126.2200 +125.6600 Dollar/Swiss CHF= 0.9913 0.9836 +0.78% +1.74% +0.9919 +0.9853 Sterling/Dollar GBP= 1.2680 1.2684 -0.03% -6.16% +1.2719 +1.2669 Dollar/Canadian CAD= 1.3609 1.3588 +0.15% +8.21% +1.3617 +1.3580 Australian/Doll AUD= 0.7059 0.7037 +0.31% -9.51% +0.7060 +0.7033 ar Euro/Swiss EURCHF= 1.1292 1.1257 +0.31% -3.38% +1.1295 +1.1246 Euro/Sterling EURGBP= 0.8981 0.8980 +0.01% +1.10% +0.9000 +0.8968 NZ NZD= 0.6729 0.6724 +0.07% -5.02% +0.6740 +0.6721 Dollar/Dollar Dollar/Norway NOK= 8.8070 8.7699 +0.42% +7.30% +8.8246 +8.7372 Euro/Norway EURNOK= 10.0310 9.9771 +0.54% +1.85% +10.0476 +9.9669 Dollar/Sweden SEK= 9.0681 9.0533 +0.13% +10.56% +9.0804 +9.0404 Euro/Sweden EURSEK= 10.3290 10.3151 +0.13% +4.98% +10.3431 +10.3108

(Editing by David Gregorio) ((Karen.Brettell@thomsonreuters.com; +1 646 223 6274; ReutersMessaging: karen.brettell.reuters.com@reuters.net))


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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