* GRAPHIC-World FX rates in 2019:
(New throughout, updates prices, market activity and comments, adds
By Kate Duguid
NEW YORK, Feb 11 (Reuters) - The dollar on Monday hit a 2019 high
in the eighth day of its longest rally in two years, as concerns about
a trade deal with China and an economic slowdown in Europe sent
investors into the safe-haven currency.
China struck an upbeat note on Monday as trade talks resumed with
the United States, but also expressed anger at a U.S. Navy mission
through the disputed South China Sea, casting a shadow over the
prospect for improved Beijing-Washington ties.
Investors were skeptical that the world's largest economies could
reach a deal and instead expect an extension of the March 1 deadline
for deciding whether to increase tariffs.
On "the trade process, and the hope that China will buy more
U.S. goods, we might see some headlines supportive of a warming in
trade talks. But there are also the intellectual property and tech
transfer issues and we have not seen any progress on that front and
I'm not sure we will this week," said Juan Prada, currency
strategist at Barclays in New York.
The United States is expected to keep pressing China on
longstanding demands that it reform how it treats U.S. companies'
On Monday afternoon the greenback was headed for an eighth
consecutive day of gains, as investors, in a flight to quality assets,
piled into the world's most liquid currency. The rally is the longest
since February 2017, when the dollar notched a 10-day winning streak.
The dollar move reverberated across currency markets, driving the
euro to its lowest since Nov. 14 at $1.1263 . Against the Japanese
yen, the dollar strengthened to 110.46
Soft European data last week also contributed to a buoyant dollar
against a weakened single currency. The European Commission sharply
cut on Thursday its forecasts for euro zone growth for this year and
next, with the bloc's largest economies expected to be held back by
global trade tensions and domestic challenges.
Recent strength in the dollar has emerged despite the Federal
Reserve striking a cautious tone at its policy meeting in January. The
dollar index , a gauge of its value versus six major peers, was 0.43
percent higher at 97.057.
Sterling extended losses, against the stronger dollar but also on
Brexit uncertainty, reaching its weakest since Jan. 21 down as much as
0.67 percent on the day to $1.1284.
GRAPHIC-World FX rates in 2019:
(Reporting by Kate Duguid and Tom Finn; Editing by David Gregorio)
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