Early trade in New York: dollar gains broadly as US backs softer restrictions on China investment

The US dollar rose broadly on Wednesday, including against the Swiss franc and Japanese yen, both traditional safe havens, as trade-related worries eased following a slight moderation in the US administration's approach to Chinese investment.
The dollar was up 0.34 percent against the yen at 110.42 yen, and advanced 0.44 percent against the franc. The Japanese and Swiss units tend to benefit at the dollar's expense in times of geopolitical and financial tensions. "The yen was stronger prior to that modest softening in the stance there. After that news we saw a weakening in the yen," said Eric Viloria, currency strategist at Wells Fargo Securities in New York.
US President Donald Trump said on Wednesday he will use a strengthened security review process to deal with threats from Chinese investments to acquire US technologies instead of imposing China-specific restrictions.
Investors' risk appetite took a hit earlier this week following reports on Monday that the US Treasury Department was drafting curbs that would block companies with at least 25 percent Chinese ownership from buying US tech firms. "Those reports of the US administration seeking a less harsh approach towards China contributed to the yen's movement today," Viloria said.
The dollar index, which measures the greenback against a basket of six currencies, was up 0.37 percent at 95.013, on pace for its second day of gains.
Despite the slight easing in trade tensions, the trade-sensitive Australian and New Zealand dollars remained under pressure. The kiwi was 0.8 percent lower against the greenback, while the Aussie slipped 0.05.
The offshore yuan fell to as low as 6.6195, its weakest since mid-December, after the People's Bank of China lowered the currency's midpoint to its weakest in six months for a sixth straight day. The euro was 0.39 percent lower at $1.16, under pressure from the trade conflict, the threat of a political crisis in Germany and uncertainty over a European Union summit.