Oil pares gains as Trump okays emergency oil reserve use...

• Oil pares gains as Trump okays emergency oil reserve use
• Safe-haven yen, Swiss franc trim initial increases
• Currencies of oil exporters Norway, Canada gain
• Short-covering seen lifting greenback before Fed meeting
• Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Updates market action, adds quote, graphic)

The dollar rose against a basket of currencies on Monday as U.S. President Donald Trump's authorization of the use of an emergency crude stockpile in response to attacks on Saudi Arabian refining facilities cooled a surge in oil prices.

The Japanese yen and Swiss franc, both traditional safe-haven currencies, gave up much of their initial gains with a pullback in crude prices and anxiety about a disruption in global energy supply, analysts said.

Still, investors remained nervous about another attack, which underpinned demand for currencies of oil exporters such as Norway and Canada.

"Trump's decision to offer up the strategic reserve to mitigate the fallout helped," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. "The situation is still edgy on uncertainty over further attacks and possible retaliation."

Oil prices had jumped about 20% in reaction to the drone strikes, which knocked out more than 5% of global oil output. Yemen's Iran-aligned Houthi group claimed responsibility, but the United States has blamed Tehran.

On Sunday, Trump said he had authorized the release of oil from the U.S. Strategic Petroleum Reserve (SPR) if needed in a quantity to be determined. He also said Washington was "locked and loaded" to retaliate for the attacks on the Saudi facilities.

Another factor boosting the greenback was some exiting of bearish dollar bets in advance of the U.S. Federal Reserve's two-day policy meeting. Traders widely expect the Fed will cut interest rates by a quarter of a percentage point this week.

In July, Fed policymakers lowered short-term rates for the first time since 2008.

"The market wants to short-cover in front of the Fed if the Fed doesn't cooperate," Schlossberg said.

On the other hand, speculators trimmed their bullish bets on the dollar, according to the latest data from the Commodity Futures Trading Commission.

In late U.S. trading, an index that tracks the greenback against the euro, yen, sterling and three other currencies .DXY was up 0.39% at 98.641. It touched its lowest level since Aug. 27 on Friday.

The dollar JPY=EBS was 0.03% lower at 108.070 yen, recovering from an earlier low of 107.44 during Asian trading.

The greenback CHF=EBS fell to 98.655 Swiss franc before reversing to trade at 99.285, up 0.29% on the day.

Among currencies tied to oil-exporting countries, the Norwegian crown NOK=D3 strengthened to 8.9179 per dollar earlier before retreating to 8.9545, up 0.35% on the day.

The Canadian dollar CAD=D3 rose 0.35% to C$1.3243 after earlier reaching C$1.3208.

The Russian ruble RUB= was 0.41% higher. Sterling, which has soared over the past week on growing investor confidence that a no-deal Brexit is off the table, fell back from a two-month high to $1.2426 GBP=D3 , down 0.62%. It was little changed against the euro to 88.55 pence EURGBP=D3 .

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	Currency bid prices at 2:47PM (1847 GMT) 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	  EUR=		$1.0998		$1.1073	 -0.68%		 -4.11%	  +1.1091	 +1.0994 
 Dollar/Yen	   JPY=		108.0700	   108.0700	+0.00%		 -1.99%	  +108.0900   +107.4800 
 Euro/Yen		 EURJPY=	 118.85		 119.69	  -0.70%		 -5.84%	  +119.5000   +118.7000 
 Dollar/Swiss	 CHF=		0.9928		 0.9902	  +0.26%		 +1.16%	  +0.9939	 +0.9866 
 Sterling/Dollar  GBP=		1.2422		 1.2500	  -0.62%		 -2.63%	  +1.2509	 +1.2400 
 Dollar/Canadian  CAD=		1.3237		 1.3283	  -0.35%		 -2.93%	  +1.3270	 +1.3207 
 Australian/Doll  AUD=		0.6865		 0.6877	  -0.17%		 -2.61%	  +0.6884	 +0.6855 
 ar																							  

 Euro/Swiss	   EURCHF=	 1.0919		 1.0961	  -0.38%		 -2.98%	  +1.0964	 +1.0913 
 Euro/Sterling	EURGBP=	 0.8852		 0.8858	  -0.07%		 -1.47%	  +0.8902	 +0.8850 
 NZ			   NZD=		0.6343		 0.6375	  -0.50%		 -5.57%	  +0.6391	 +0.6343 
 Dollar/Dollar																				   

 Dollar/Norway	NOK=		8.9545		 8.9860	  -0.35%		 +3.66%	  +8.9892	 +8.9179 
 Euro/Norway	  EURNOK=	 9.8486		 9.9515	  -1.03%		 -0.58%	  +9.9299	 +9.8372 
 Dollar/Sweden	SEK=		9.6625		 9.6075	  -0.13%		 +7.79%	  +9.6918	 +9.5968 
 Euro/Sweden	  EURSEK=	 10.6286		10.6422	 -0.13%		 +3.55%	  +10.6760	+10.6254 
	 
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GRAPHIC-U.S. Fed's next rate cut?	 http//tmsnrt.rs/2yqy9R4 

GRAPHIC-U.S. Fed's next rate cut? interactive http//tmsnrt.rs/2yrEpbn

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