* Dollar slips, APEC offers limited FX direction
* U.S., China fail to agree on currency position
* Dollar index hovers near 15-month low
(Adds comment, updates throughout; previous TOKYO)
By Naomi Tajitsu
LONDON, Nov 16 (Reuters) - The dollar slipped on Monday as
traders took a lack of agreement on currencies among Asian and
U.S. leaders as a cue to sell the greenback, even as speculation
of a near-term yuan appreciation cooled.
The U.S. currency also came under selling pressure with
European shares rising and gold hitting a fresh record high,
suggesting an increase in risk appetite.
The United States and China failed to reach an agreement over
currencies at a summit of the Asia Pacific Economic Cooperation
(APEC) forum in Singapore at the weekend, resulting in the
omission to a reference to "market-oriented exchange rates" from
the communique []
Analysts said the APEC meeting offered little new direction
on currencies, which traders took as a green light to keep the
dollar's ongoing downtrend intact on the view that U.S. interest
rates will stay low as those in other countries eventually rise.
"There were no comments against the weak dollar (from APEC),
and that's giving the market free rein to sell the dollar," said
Ante Praefcke, currency strategist at Commerzbank in London.
The disagreement between Washington and Beijing comes as
U.S. President Barack Obama visits China this week. The yuan's
peg to the dollar keeps the Chinese currency weak against its
U.S. counterpart, and any yuan appreciation is seen weakening
the dollar.
By 0842 GMT, the dollar was down roughly half a percent to
74.990, near a 15-month trough hit last week.
The euro <EUR=> rose 0.4 percent to $1.4975, edging closer
to the psychologically key $1.50 level. Market participants said
the euro was supported by a 0.7 percent rise in European shares
<> in early trade.
The dollar <JPY=> slipped 0.3 percent to 89.50 yen.
Traders offered limited reaction to data showing Japan's
economy grew at the fastest pace in more than two years in the
third quarter as stimulus lifted consumer spending and capital
spending rose. []
U.S. RETAIL SALES AWAITED
Trading ranges were small as the market watched comments
from the International Monetary Fund on Monday saying a stronger
yuan was part of the reforms Beijing needed to boost domestic
consumption. []
Also on Monday, a Chinese Commerce Ministry official said
the country should keep the currency stable as it was beneficial
to a global recovery.[]
Traders were also looking at flow direction, watching for
yen outflows from Japanese investment trusts launching on Monday
and Tuesday, as well as looking for signs of yen repatriation
from U.S. Treasury coupon flows which fell due on Nov. 15.
A final reading of euro zone inflation for October is due at
1000 GMT, but with little in the way of economic data or events
in the European session, analysts said the market would be
watching U.S. retail sales due later in the day.
A Reuters poll showed expectations for sales to rise in
October, reversing a fall the previous month, and analysts said
a strong reading boost risk appetite, which may push the dollar
lower.
(Additional reporting by Tokyo Forex Team, editing by Nigel
Stephenson)
