* Sterling hits highest since mid-July on EU's Juncker comments
* Less U.S. money market stress pares demand for greenback
* Norwegian crown's gain fades after Norges Bank hikes rates
* Graphic: World FX rates in 2019
(Updates market action, adds quote)
By Kate Duguid and Richard Leong
NEW YORK, Sept 19 (Reuters) - The dollar fell against most major
currencies on Thursday as some central banks refrained from cutting
interest rates after the Federal Reserve's second rate decrease this
year, boosting the appeal of their currencies versus the greenback.
Sterling rallied in late U.S. trading following comments from
European Commission President Jean-Claude Juncker which raised hopes
for a deal for Britain to leave the European Union.
The Swiss National Bank, the Bank of England and the Bank of Japan
all kept their policies on hold on Thursday. Norges Bank increased its
key policy rate, moving its rates in the opposite direction of Europe
and the United States.
These central banks are generally "kind of holding their
breath and holding their fire in terms of fully acknowledging that
further easing could come down the road but not moving in a proactive
way towards additional easing," said Brian Daingerfield, head of
G10 FX strategy at NatWest Securities in Stamford, Connecticut.
On Wednesday, the Fed as expected cut interest rates by a quarter
point to support a record-long economic expansion but signaled a
higher bar for further reductions in borrowing costs amid a favorable
On the other hand, the Organisation for Economic Co-Operation and
Development (OECD) on Thursday cut its global economic growth
forecasts for 2019 and 2020. U.S. gross domestic product is expected
to rise 2.4% this year, down from a forecast 2.8% growth in May, the
In late U.S. trading, the euro was up 0.19% at $1.1051, while the
greenback was 0.42% lower at 107.99 yen.
The dollar shed 0.53% at 0.99235 Swiss franc, and declined 0.32%
The greenback fell to a five-week low at 8.9688 Norwegian crown
before erasing its earlier losses.
Some analysts also attributed lower demand for the greenback as
stress in U.S. money markets has subsided with the Fed injecting over
$200 billion in temporary cash into the banking system since Tuesday.
"The shortage of dollars has eased somewhat. With a possible
crisis averted, you have people moving back into other
currencies," said Karl Schamotta, chief market strategist at
Cambridge Global Payments in Toronto.
Meanwhile, the British pound posted a late lift after Juncker said
"I think we can have a deal" if the Irish border backstop,
which the British government wants removed, could be replaced with alternatives.
Following Juncker's comments, sterling hit $1.256, its highest
since July 15 and $88.04 pence per euro, a level not seen since late
Currency bid prices at 3:06PM (1906 GMT)
Description RIC Last U.S. Close Pct Change
YTD Pct High Bid Low Bid
Euro/Dollar EUR= $1.1051 $1.1029 +0.20%
-3.64% +1.1073 +1.1024
Dollar/Yen JPY= 107.9700 108.4400 -0.43%
-2.07% +108.4600 +107.8000
Euro/Yen EURJPY= 119.33 119.60 -0.23%
-5.46% +119.6600 +118.9800
Dollar/Swiss CHF= 0.9923 0.9973 -0.50%
+1.11% +0.9983 +0.9901
Sterling/Dollar GBP= 1.2534 1.2468 +0.53%
-1.75% +1.2559 +1.2439
Dollar/Canadian CAD= 1.3255 1.3284 -0.22%
-2.80% +1.3307 +1.3242
Australian/Doll AUD= 0.6799 0.6827 -0.41%
-3.55% +0.6832 +0.6781
Euro/Swiss EURCHF= 1.0966 1.1000 -0.31%
-2.56% +1.1017 +1.0957
Euro/Sterling EURGBP= 0.8816 0.8841 -0.28%
-1.87% +0.8893 +0.8805
NZ NZD= 0.6304 0.6320 -0.25%
-6.13% +0.6331 +0.6299
Dollar/Norway NOK= 8.9694 8.9450 +0.27%
+3.83% +8.9835 +8.8885
Euro/Norway EURNOK= 9.9115 9.8652 +0.47%
+0.06% +9.9277 +9.8124
Dollar/Sweden SEK= 9.6857 9.7251 -0.21%
+8.05% +9.7388 +9.6739
Euro/Sweden EURSEK= 10.7043 10.7272 -0.21%
+4.29% +10.7551 +10.6970
EXPLAINER-The Fed has a repo problem. What's that?
(Reporting by Richard Leong, Kate Duguid in NEW YORK Additional
reporting by Tommy Wilkes, Saikat Chatterjee in LONDON Editing by
Rosalba O'Brien and Chris Reese)
((firstname.lastname@example.org; +1 646 223 6313; Reuters