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Forex - Dollar up vs. most rivals amid persisting Europe debt fears

Published 06/07/2010, 10:04 AM
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Investing.com – The U.S. dollar was up against most other major currencies on Monday as fears that Europe's debt crisis will spread persisted, despite upbeat economic data from the euro zone.

The greenback was up against the euro, with EUR/USD shedding 0.09% to hit 1.1955 after official data showed that new purchase orders placed with German manufacturers unexpectedly rose in April.

Also Monday, a survey by the Sentix research group suggested that investor confidence in the euro zone improved faster than forecast in June.

Meanwhile, the dollar rose the Swiss franc and the yen, with USD/CHF gaining 0.05% to hit 1.1635 and USD/JPY climbing 0.08% to reach 91.96.

The greenback also rose against its Australian and New Zealand counterparts: AUD/USD shed 0.45% to hit 0.8196 and NZD/USD slid 0.51% to reach 0.6674.

But the greenback was down against sterling and the Canadian dollar, with GBP/USD rising 0.22% to hit 1.4486 and USD/CAD sliding 0.54% to hit 1.0626.

Sterling's advance came after Britain's prime minister, David Cameron, warned that unless painful cuts were made, annual interest payments on U.K. debt would hit about GBP 70 billion per year within five years.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05%.

Later in the day, the Federal Reserve was due to release a report on U.S. consumer credit, an important signal of consumer confidence.

The chairman of the Fed, Ben Bernanke, was also due to speak at an event in Washington D.C. Traders were likely to scrutinize his comments for clues to future shifts in monetary policy.

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