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Forex - Dollar down vs. rivals as U.S. housing data eyed

Published 01/19/2011, 07:56 AM
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Investing.com – The U.S. dollar was down against all of its major counterparts on Wednesday, as increased risk appetite dampened demand for the dollar and as investors awaited the release of U.S. economic data.

During European early afternoon trade, the greenback was down against the euro, with EUR/USD surging 0.92% to hit 1.3512.

Successful short-term debt sales by Germany and Portugal earlier in the day as well as reported Asian sovereign buying helped support the single currency.

The greenback was also down against sterling with GBP/USD climbing 0.4% to hit 1.6027.

Earlier in the day, official data showed that the number of Britons claiming jobless benefits fell unexpectedly in December, while the number of people out of work in the third quarter posted the biggest rise since March 2010.

Elsewhere, the greenback was down against the yen and the Swiss franc, with USD/JPY falling 0.58% to hit 82.07 and USD/CHF shedding 0.45% to hit 0.959.

Meanwhile, the greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD sliding 0.15% to hit 0.9895, AUD/USD surging 0.82% to hit 1.0073 and NZD/USD advancing 0.81% to hit 0.778.

Earlier in the day, a report compiled by Westpac Banking Corp. and the Melbourne Institute showed that Australian consumer confidence fell to a seven month low in January, amid concerns that flood damage in Queensland will hit the country’s economy.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.81%.

Later in the day, the U.S. was expected to publish official data on building permits as well as a report on housing starts.

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