* Dollar down; global shares gain
* China export slump provides reminder of global uncertainty
* Sterling remains pressured as QE kicks off
(Changes byline, dateline; previous LONDON, adds quotes,
updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, March 11 (Reuters) - The dollar fell broadly on
Wednesday, as risk appetite improved with the rise in stock
markets worldwide, modestly dampening the greenback's
safe-haven appeal.
Gains in emerging market units such as the Hungarian forint
and Polish zloty versus the dollar also weighed on the U.S.
currency, analysts said.
"It's the same story. Stocks are better bid and so there's
some risk appetite coming back. That's helping the dollar,"
said Boris Schlossberg, director of currency research at GFT in
New York.
European shares turned positive <>, with banks
leading the way as U.S. stocks edged up. After an early
stumble, stocks were following Tuesday's rally on news
Citigroup was profitable in the first two months of 2009
[].
In early New York trading, the euro rose 0.9 percent to
$1.2780 <EUR=>, having touched a two-week high of $1.2823 on
trading platform EBS on Tuesday, while the dollar was down 0.6
percent at 98.06 yen <JPY=>.
The dollar fell 0.5 percent against the Swiss franc to
1.1541 <CHF=>, while the Australian and New Zealand dollars
rose sharply against the greenback to US$0.6509 <AUD=> and
US$0.5060 <NZD=>, respectively.
The dollar fell 0.7 percent on the day against a basket of
six major currencies to 87.923 <.DXY>. It struck a three-year
peak on the index last week, at 89.624.
The euro's gains could be limited, however as markets got a
timely reminder of the sickly state of global economic growth
after data earlier in the global session showed a slump in
economic powerhouse China's exports in February.
[].
"The dramatic deterioration in China's trade balance
suggests that caution remains recommended and a lasting
reversal in the (strong) dollar trend is unlikely,' said
Commerzbank in a research note.
GFT's Schlossberg added that the Chinese trade report has
cast doubts on China's ability to finance the U.S. current
account deficit and in the long run could weigh on the dollar.
"The concern is that maybe China will not be able to
generate massive amounts of foreign exchange capital which can
then be recycled to U.S. Treasury securities. That is the big
fear factor that hangs over the dollar."
Sterling, meanwhile, stayed under pressure against the
single European currency, hovering near 5-1/2 week lows as
Britain officially started its quantitative easing program to
boost money supply.
The pound hit a six-week low against the dollar at $1.3658
<GBP=>. It last traded at $1.3833, up 0.6 percent on the day.
The euro was up 0.3 percent versus sterling at 92.42 pence
<EURGBP=>.
(Additional reporting by Veronica Brown in London; Editing by
Andrea Ricci)
