* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Trump plans China news conference for Friday
* Euro set for second weeks of gains
By Julien Ponthus
LONDON, May 29 (Reuters) - The euro extended its gains on Friday to a two-month high as traders waited for U.S. President Donald Trump's response to China's tightening control over Hong Kong, which could further worsen tensions between the two over the financial hub.
The yen rose against major currencies as investors looked for safe havens before Trump's response to China's passing of a national security law for Hong Kong.
"I think the market is still fearful that it might escalate into something more serious. If he was serious with trade tariffs, that would have a meaningful impact", said Moh Siong Sim, a currency strategist at Bank of Singapore.
"You can never quite predict Trump. But I think this year it's really difficult for him to do tough action", he added, referring to the dire state of the U.S. economy.
Offshore, the yuan was little changed and traded at 7.1661 per dollar, not far from the nine-month low of 7.1965 yuan per dollar reached on Wednesday.
The euro, which got a boost following the European Commission's stimulus plan announced earlier this week, rose 0.2% to $1.111, its highest since March 30.
The common currency was headed for its second weekly gain after the 750 billion-euro coronavirus recovery fund fuelled optimism about the euro zone economy.
The pound fell against the euro. The single currency was last up 0.3% at 90.145 pence.
The pound has been hurt by calls for the resignation of an aide to British Prime Minister Boris Johnson, lack of progress in EU trade talks, and speculation about negative interest rates.
Sterling was stable against the dollar, down 0.04% at $1.2312 but still on course for its second weekly gain.
The dollar fell 0.4% against the Japanese currency at 107.17 yen.
The Australian dollar fetched $0.6650, close to its highest in more than two months. The New Zealand dollar traded at $0.6208, near its strongest since early March.
The Aussie and the kiwi were on course for weekly gains as investors cheered the gradual re-opening of business activity in the countries. (Additional reporting by Tom Westbroolk, editing by Larry King)
https://finance.yahoo.com/news/forex-euro-yen-gain-trumps-084125188.html
2020-05-29 08:41:00Z
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