* Investor appetite for riskier assets recovers
* Euro rises from June 2017 lows, dollar slips
* Emerging market currencies rebound, lira strengthens
* Graphic: World FX rates in 2018
(Adds details, quotes, updates prices)
By Tommy Wilkes
LONDON, Aug 16 (Reuters) - The euro recovered on Thursday from its
weakest since late June 2017 and the dollar fell after news that a
Chinese delegation will travel to the United States for trade talks,
with investors buying back into currencies hit hard in the recent sell-off.
Many emerging market currencies also rose, clawing back some of
Wednesday's losses thanks to easing fears over the knock-on effects
from a slide in the Turkish lira.
Global equity markets were mixed, however, underlining how nervous
"That China and the U.S. are beginning to talk again is
supporting the market," said Commerzbank currencies strategist
Thu Lan Nguyen. "As the (Turkish) lira did not depreciate
further, that has taken out some tension from the market."
She also emphasised that the currency crisis in Turkey is far from
over because authorities have yet to tackle the root causes.
More important for major currencies on Thursday were developments
in the months-long trade conflict between the United States and China.
China's Ministry of Commerce said it had received an invitation
from the United States for talks to be held with U.S. Under Secretary
of Treasury for International Affairs David Malpass.
The euro rose 0.2 percent to $1.1367 , away from Wednesday's low
The dollar, which has gained on bouts of investor jitters as
traders seek safety in the higher-yielding and most liquid currency,
fell after a recent strong run. The dollar index slipped 0.1 percent
to 96.613 .
China's yuan, which has fallen in recent months on concerns about
the impact on its economy of the trade conflict with the United
States, gained 0.7 percent in offshore markets to 6.9005
Emerging market currencies bounced across the board, including the
South African rand , the Mexican peso and Russian rouble .
Turkey's lira rallied about 3 percent to 5.7923 before a
presentation by Finance Minister Berat Albayrak to investors, but is
still down 34 percent against the dollar this year.
Despite Thursday's calm, analysts remain cautious about the
outlook for markets, particularly those outside of the United States
that have looked vulnerable whenever investors get nervous.
Simon Derrick, chief currency strategist at BNY Mellon, said
"a seeming disconnect between U.S. markets and those elsewhere is
becoming increasingly obvious", given the performance of U.S.
equities and the dollar in 2018.
"The risk is that the apparent calm in U.S. markets may be
giving U.S. investors a false read about how volatile the next few
months might prove for global markets," Derrick said.
The yen paused after its recent run, with the dollar gaining 0.1
percent to 110.84 yen .
Norway's crown fell slightly against the euro after the
Norwegian central bank kept interest rates on hold and reiterated it
planned to hike in September. It was largely unmoved against the
dollar, up 0.6 percent on the day .
The Australian dollar, seen as a proxy for China-related trades,
climbed 0.4 percent to $0.7265 after falling to $0.7202 on
Wednesday, its weakest since January 2017.
(Editing by David Goodman and David Holmes)