* Dollar under pressure vs. safe-haven currencies as yields
slip
* Softer-than-expected ISM, Delta variant fears sap risk
appetite
* Aussie jumps after RBA sticks with bond tapering plan
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Ritvik Carvalho
LONDON, Aug 3 (Reuters) - The New Zealand and Australian
dollar were the biggest gainers among major currencies on
Tuesday, helped by talk from their central banks, while the U.S.
dollar took a backseat to the yen and Swiss franc amid some risk
aversion in markets.
The Kiwi dollar rose 0.6% to $0.7007 - the biggest
gainer among G10 currencies on the day - after New Zealand's
central bank said on Tuesday it would soon begin consulting on
ways to tighten mortgage lending standards, as it tries to
control an inflated housing market and protect home buyers.
The Australian dollar spiked higher after the Reserve Bank
of Australia stuck with its plan to taper its bond-buying
programme, shrugging off concerns about the economic impact from
rising coronavirus cases. It gained half a percent to $0.7393
against its U.S. counterpart.
The U.S. dollar slipped 0.14% to 109.16 yen, near its
July 19 low of 109.07, which was its lowest level since late
May. Against the Swiss franc, the dollar traded 0.3% lower at
0.9026 franc, having hit a 1-1/2-month low of 0.9038 in
the previous session.
The index that measures the dollar's strength against a
basket of peers was down 0.1% by 1053 GMT.
Market watchers have of late pointed to the decline in U.S.
Treasury yields as being indicative of fears of a coming
disappointment in economic growth.
The U.S. 10-year Treasury yield dropped on Monday shortly
after an Institute for Supply Management (ISM) report showed
July U.S. manufacturing growth slowed for the second successive
month.
"We saw demand for high-yielding currencies returning after
the underwhelming July manufacturing ISM yesterday seemingly
made the patient Fed want to wait longer before embarking on
policy normalisation and thus weighed on the USD, the UST yields
and US rates," said Valentin Marinov, head of G10 FX research at
Credit Agricole.
"That being said, I suspect that the FX investors will
continue to position for the gradual removal of Fed policy
accommodation and the next big event on the calendar will be the
August 26-28 Jackson Hole central bank symposium, which has
served as the venue for important Fed policy announcements in
the past."
Marinov said some clients believe Federal Reserve Chair
Jerome Powell can offer more details about the timing and scope
of QE tapering at the gathering.
The euro was a touch higher at $1.1887, having lost
some momentum after hitting a one-month high of $1.1909 on
Friday. Sterling gained 0.3% to $1.3931, just off
Friday's one-month high of $1.39835.
Clouding the outlook for the dollar further is the spread of
the COVID-19 Delta variant. In the United States, COVID-19
hospital admissions in Louisiana and Florida have hit a new peak
though top U.S. health expert Anthony Fauci has ruled out
another lockdown in the country.
That outweighed any excitement over a $1-trillion
infrastructure investment bill that could be ready for a final
vote as early as this week.
Japan expanded state of emergency curbs to more regions on
Monday as cases hit a record in Tokyo. In China, the spreading
Delta variant poses new risks for the world's second-biggest
economy.
(Additional reporting by Hideyuki Sano in Tokyo, Editing by
Timothy Heritage)