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Forex - Dollar broadly lower vs. rivals as EU ministers gather

Published 01/17/2011, 10:50 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Monday, as European Union finance ministers began a critical two-day meeting to discuss enlarging the euro-zone’s bailout fund.

During European late afternoon trade, the greenback was higher against the euro, with EUR/USD shedding 0.68% to hit 1.3294.

But the greenback was down against sterling with GBP/USD advancing 0.19% to hit 1.59.

The pound rallied on increasing speculation that the Bank of England may raise interest rates as early as June after a strong U.K. wholesale inflation reading last week helped fuel the argument that prices will continue to rise, in part due to climbing food and commodity costs.

Elsewhere, the greenback was down against the yen but up against the Swiss franc, with USD/JPY shedding 0.27% to hit 82.64 and USD/CHF easing up 0.06% to hit 0.9641.

Earlier in the day, official data showed that Japan's Consumer Confidence Survey index fell to 40.1 in December from 40.4 in November, posting the sixth consecutive monthly drop.

Meanwhile, the greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.41% to hit 0.9869, AUD/USD surging 0.63% to hit 0.9948 and NZD/USD soaring 0.92% to hit 0.773.

Earlier Monday, data showed that Australia’s inflation remained above the central bank’s target range for a fourth straight month in December, rising at an annualized rate of 3.8%.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.3%.

Also Monday, markets in the U.S. were remaining closed for Martin Luther King Day.

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