* Graphic: World FX rates in 2019
* Aussie weakens 0.5 pct
* Euro, sterling marginally weaker versus dollar
By Vatsal Srivastava
SINGAPORE, Feb 8 (Reuters) - The dollar held near a two-week high
on Friday, as investors rushed to the safety of the greenback
following a setback in U.S.-China trade negotiations and broader
worries about slowing global growth.
Such concerns were brought to the fore on Thursday after the
European Commission sharply cut its forecasts for euro zone economic
growth this year and next on expectations the bloc's largest countries
will be held back by global trade tensions and domestic challenges.
Investors' anxieties about the global economy were also compounded
by comments from U.S. President Donald Trump, who said he did not plan
to meet with Chinese President Xi Jinping before a March 1 deadline to
achieve a trade deal.
"The dollar is being supported by worries over global growth
and external factors," said Sim Moh Siong, currency strategist at
Bank of Singapore.
"Markets are waiting to see what policy measures can
stabilise growth worldwide...until then, it's hard to see the dollar weakening."
The dollar index , a gauge of its value versus six major peers
was steady at 96.56, sitting just shy of its two-week high.
The index has gained for six straight sessions in a row. This was
mainly due to a weaker euro, which has around 58 percent weightage in
the index, and came despite the Federal Reserve's dovish shift on
interest rates last week.
The euro was marginally lower at $1.1338, on track to post its
fifth straight day of losses. The single currency has been stumbling
due to weaker-than-expected growth data out of the eurozone and
expectations that the European Central Bank will keep monetary policy
accommodative this year.
The yen was flat in early Asian trade at 109.78. Analysts think
Japanese demand for foreign bonds has supported dollar/yen. The
greenback gained around 0.8 percent versus the yen over the last week.
Elsewhere, the Aussie dollar was down 0.5 percent at $0.7067 as
the Reserve Bank of Australia cut its growth forecasts.
The Aussie has shed more than two percent of its value so far this
week after the central bank's signalled a shift from its long-standing
tightening bias earlier this week.
But analysts see limited downside for the Aussie.
"Aussie dollar should find technical support at $0.70 versus
the dollar..quite a lot of bad news is priced in already and rising
iron-ore prices should also be supportive," added Bank of
Sterling was marginally lower at $1.2950. Traders expect the
British pound to remain volatile in the near term due to the
uncertainty surrounding Brexit.
The United Kingdom is currently on course to leave the European
Union on March 29 without a deal unless British Prime Minister Theresa
May can convince the bloc to reopen the divorce agreement she reached
(Reporting by Vatsal Srivastava; Editing by Sam Holmes)
((email@example.com; +65 68703571; Reuters