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Forex - Dollar down across the board as oil, yields weigh

Published 03/09/2011, 10:55 AM
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Investing.com – The U.S. dollar was down against all of its major counterparts on Wednesday, amid concerns that the recent rally in oil prices could dampen the U.S. recovery and further weighed by the likelihood for a sustained period of low interest rates.

During European late afternoon trade, the greenback was lower against the euro, with EUR/USD rising 0.18% to hit 1.3928.

Earlier in the day, Portugal’s government debt agency successfully sold EUR1 billion of two-year bonds, albeit at sharply higher yields than at a previous auction in September.

The greenback was also lower against the pound, with GBP/USD climbing 0.32% to hit 1.6212.

Earlier Wednesday, official data showed that the U.K. goods trade deficit contracted sharply in January, recovering from its worst reading on record in December.

Elsewhere, the greenback was down against the yen and the Swiss franc, with USD/JPY dipping 0.01% to hit 82.64 and USD/CHF tumbling 0.70% to hit 0.9285.

Earlier in the day, official data showed that Swiss consumer price inflation rose slightly more-than-expected in February. Elsewhere, government data showed that Japanese machinery orders rose by the most in five months in January.

Meanwhile, the greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.22% to hit 0.9691, AUD/USD easing up 0.11% to hit 1.0106 and NZD/USD edging up 0.02% to hit 0.7398.

Earlier Wednesday, official data showed that Canadian new house prices rose less-than-expected in January.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.18%.

Also Wednesday, official data showed that industrial production in Germany rebounded in January, as construction output improved after the weather-related slump in December.

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