* Trump ratchets up criticism of Fed interest rate rises
* Dollar posts worst day in 3 wks, retreats from year high
* Wall St edges higher, Europe equities dip, Asia supports
* Oil prices stabilize amid trade tensions, oversupply worries (Updates to U.S. market open; changes dateline, previous LONDON)
By Lewis Krauskopf
NEW YORK, July 20 (Reuters) - The U.S. dollar weakened on Friday against key world currencies as President Donald Trump complained again about its strength, while U.S. and European stock markets were tepid amid fresh tariff talk and another round of corporate earnings.
U.S. government bond yields rose as Trump repeated his criticism a day earlier of the Federal Reserve's policy on raising interest rates, saying it takes away from the United States' "big competitive edge." He also lamented the strength of the dollar and accused the European Union and China of manipulating their currencies. dollar was on pace for its biggest single-session drop in three weeks against a basket of major currencies, stalling a rally that had driven the greenback to a year high.
“The dollar is an important issue today especially because we have been on a rise for quite a long time,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.
The dollar index .DXY , tracking it against six major currencies, fell 0.59 percent, with the euro EUR= up 0.57 percent to $1.1707.
On Wall Street, the Dow Jones Industrial Average .DJI rose 41.81 points, or 0.17 percent, to 25,106.31, the S&P 500 .SPX gained 4.14 points, or 0.15 percent, to 2,808.63 and the Nasdaq Composite .IXIC added 31.92 points, or 0.41 percent, to 7,857.21.
“The dollar going down typically tends to lift equities and I think that is partly why we have seen a little bit of a turnaround today,” Frederick said.
Microsoft MSFT.O shares rose, boosting indexes after a strong earnings report, while General Electric (NYSE:GE) GE.N shares sank after the conglomerate cut a key financial target. the latest trade salvo, Trump said he was ready to impose tariffs on all $500 billion of imported goods from China. gauge of stocks across the globe .MIWD00000PUS gained 0.45 percent, helped by Asian markets .MIAPJ0000PUS .
The pan-European FTSEurofirst 300 index .FTEU3 lost 0.13 percent, amid rising trade tensions. auto shares .SXAP , sensitive to trade tensions as U.S. officials work towards slapping tariffs on car imports, fell 2.1 percent.
Benchmark 10-year U.S. notes US10YT=RR last fell 12/32 in price to yield 2.8894 percent, from 2.847 percent late on Thursday.
Benchmark Brent crude stabilized as a weakening dollar and lower expected August oil exports from Saudi Arabia supported the market, overtaking concerns about U.S.-China trade tensions and supply increases. crude CLcv1 rose 0.81 percent to $70.02 per barrel and Brent LCOcv1 was last at $73.15, up 0.79 percent on the day.
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https://reut.rs/2L7SYtE World FX rates in 2018
http://tmsnrt.rs/2egbfVh
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