FOREX-Dollar holds higher after Fed chief announcement

TOKYO/LONDON, Jan 30 (Reuters) - The dollar gave back some of its earlier gains on Friday but remained higher on the day after U.S. President Donald Trump said he had appointed former governor Kevin Warsh as chair of the U.S. Federal Reserve.

The euro was last down 0.2% at $1.1947, EUR= sterling was off 0.3% at $1.378, GBP= while the dollar climbed 0.5% against the Japanese yen to 153.8 yen. JPY=

That left the dollar index, which tracks the currency against six peers 0.2% higher at 96.47. =USD

The dollar strengthened after reports earlier in the day that Trump intended to name Warsh, with the dollar index up around 0.5%.

The dollar rising is "an understandable reaction as this would confirm who the next Fed Chair will not be – Kevin Hassett or Rick Rieder," said Derek Halpenny, MUFG's head of research, Global Markets EMEA, before Warsh's appointment had been confirmed.

"Both of these candidates have been in the running and were deemed favourites at different stages, and were perceived by the markets as being inexperienced and being too close to President Trump and hence would be more easily influenced."

This "is certainly not the case with Kevin Warsh," Halpenny said.