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Forex - Dollar broadly lower, yen stable after BoJ intervention

Published 03/14/2011, 09:34 AM
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Investing.com – The U.S. dollar was broadly lower against its major rivals on Monday, while the yen remained stable after the Bank of Japan took unprecedented steps to boost market liquidity in the wake of Friday's earthquake and tsunami.

During European afternoon trade, the greenback was slightly higher against the yen, with USD/JPY easing up 0.02% to hit 81.86.

The BoJ announced earlier that it was pumping a record JPY15 trillion into the financial system and doubling the size of its asset-purchase program to JPY10 trillion to bolster confidence in the economy, in the wake of a massive earthquake, a tsunami and a nuclear emergency.

Meanwhile, the greenback was down against the euro, with EUR/USD climbing 0.30% to hit 1.3944.

Sentiment on the single currency was boosted after European Union leaders agreed Friday to increase the effective lending capacity of the European Financial Stability Facility.

The greenback was also down against the pound and the Swiss franc, with GBP/USD edging up 0.09% to hit 1.6094 and USD/CHF shedding 0.26% to hit 0.9274.

Elsewhere, the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.15% to hit 0.9744, AUD/USD falling 0.62% to hit 1.0073 and NZD/USD tumbling 0.72% to hit 0.7327.

Earlier Monday, the operators of the Fukushima Daiichi nuclear plant, located to the north of Tokyo said they could not rule out a fuel rod meltdown, after a cooling system broke, following a hydrogen explosion at another reactor.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16%.

Also Monday, Japan’s Prime Minister Naoto Kan said the situation at the nuclear plant was alarming, and the earthquake had thrown Japan into "the most severe crisis since World War II".


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