* Dollar index at 3-month low as market bets on big Fed easing
* Swiss franc near 9 month high vs dollar, 2-year high vs euro
* Gold keeps rising, bitcoin holds above $10,000
* Graphic: World FX rates in 2019
By Hideyuki Sano
TOKYO, June 25 (Reuters) - The dollar on Tuesday remained shackled
by the prospects of monetary easing by the Federal Reserve while the
safe-haven Swiss franc and gold were supported by simmering tensions
between Washington and Tehran.
The euro hit a three-month high of $1.14065 in early Asia
trade. It has gained 2.0% from a two-week low of $1.1181 touched a
week ago as the dollar has lost steam.
The dollar was on the defensive against the yen at 107.35 yen ,
a tad above Friday's five-month low of 107.045.
The U.S. currency's index against a basket of six major rivals
fell to its lowest level in three months to 95.953
, having lost 1.7% over the past week.
Selling in the dollar accelerated after the U.S. Federal Reserve
signalled it would cut interest rates before year-end on mounting
worries about the fallout from tariff wars President Donald Trump is
waging against China and many other trading partners.
U.S. bond yields dropped on Monday, with money market derivatives
increasing bets on a 50-basis-point rate cut next month. A
25-basis-point cut is already fully priced in.
Investors looked to whether Trump and Chinese President Xi Jinping
would at least call a truce in their trade war when they are expected
to meet at the G20 summit in Osaka later this week.
Trump considers his meeting with Xi at the G20 summit in Japan
this week an opportunity to "maintain his engagement" and
see where China is on their trade dispute, a senior U.S. official said
The dollar's weakness was the most notable against traditional
safe-haven assets, reflecting concerns about tensions between the
United States and Iran.
Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and
other top Iranian officials with sanctions on Monday, taking a
dramatic, unprecedented step to increase pressure on Iran.
The dollar traded at 0.9721 franc , having slipped to 0.9710 on
Monday, its lowest since late September.
The Swiss currency strengthened to near two-year highs against the
euro to 1.1079 per euro , within touching distance of 1.1057 hit on
Thursday, its highest since July 2017.
Gold also shot up to $1,425.3 per ounce , reaching its highest
levels in nearly six years.
Even the price of bitcoin held firm, staying near onea-year high
above $11,000 .
"Assets that can be used as an alternative means of
settlement are favoured, as the dollar is being shunned. Geopolitics
and the Fed are two main reasons behind this," said Ayako Sera,
market economist at Sumitomo Mitsui Trust Bank.
Elsewhere, the British pound remains dogged by Brexit concerns as
eurosceptic Boris Johnson is seen as likely to win a majority of votes
from Conservative party members who will decide the next leader and
Johnson reiterated his promise to take Britain out of the European
Union on Oct. 31, with or without a deal.
The pound fetched $1.2737 , capped by resistance around
Against the euro, the pound was on the back foot at 89.475 pence
per euro , near five-month lows of 89.74 set a week ago.
(Editing by Shri Navaratnam)
((email@example.com; +81 3 6441 1827; Reuters