Investing.com - The dollar extended Friday's gains against the world's major currencies on Monday on sentiment the European debt crisis is rekindling in Spain, while weaker-than-expected growth figures out of China also quenched appetite for risk, sending investors to the dollar for safety.
The euro fell against the dollar in Asian trading Monday, with EUR/USD falling 0.41% and trading at 1.3024.
Yields have been spiking in Spanish government bond auctions lately, fueling fears that Spain may succumb to the European debt crisis.
The cost of insuring Spanish debt for default is increasing on concerns Spain is running into financial problems.
Calls for European Central Bank intervention in Spanish bond market is growing, as such a move would lower borrowing costs and bring more immediate calm, while reports that European officials are prepared to ask the International Monetary Fund to bolster its financial arsenal to contain the crisis rattled investors' nerves as well.
Recent Chinese growth figures had investors on edge as well on Monday.
The country's gross domestic product grew 8.1% in the first quarter, below expectations for 8.3% growth and well beneath the fourth quarter's 8.9% expansion.
Over the weekend, the People’s Bank of China widened the range in which the yuan trades against the greenback for the first time since 2007, meaning Beijing is likely viewing its future with more confidence.
The greenback, meanwhile, was up against the pound, with GBP/USD down 0.13% and trading at 1.5827.
The U.S. currency was down against the yen, with USD/JPY trading down 0.03% at 80.89, and up against the Swiss franc, with USD/CHF trading up 0.47% at 0.9238.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.04% at 1.0000, AUD/USD down 0.51% at 1.0320 and NZD/USD down 0.38% at 0.8198.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.34% at 80.31.
Later Monday, the U.S. will release government data on retail sales, a key gauge to overall economic activity.
The U.S. will also unveil a report on manufacturing activity in New York, as well as government data on net long-term securities transactions and business inventories.
The euro fell against the dollar in Asian trading Monday, with EUR/USD falling 0.41% and trading at 1.3024.
Yields have been spiking in Spanish government bond auctions lately, fueling fears that Spain may succumb to the European debt crisis.
The cost of insuring Spanish debt for default is increasing on concerns Spain is running into financial problems.
Calls for European Central Bank intervention in Spanish bond market is growing, as such a move would lower borrowing costs and bring more immediate calm, while reports that European officials are prepared to ask the International Monetary Fund to bolster its financial arsenal to contain the crisis rattled investors' nerves as well.
Recent Chinese growth figures had investors on edge as well on Monday.
The country's gross domestic product grew 8.1% in the first quarter, below expectations for 8.3% growth and well beneath the fourth quarter's 8.9% expansion.
Over the weekend, the People’s Bank of China widened the range in which the yuan trades against the greenback for the first time since 2007, meaning Beijing is likely viewing its future with more confidence.
The greenback, meanwhile, was up against the pound, with GBP/USD down 0.13% and trading at 1.5827.
The U.S. currency was down against the yen, with USD/JPY trading down 0.03% at 80.89, and up against the Swiss franc, with USD/CHF trading up 0.47% at 0.9238.
The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.04% at 1.0000, AUD/USD down 0.51% at 1.0320 and NZD/USD down 0.38% at 0.8198.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.34% at 80.31.
Later Monday, the U.S. will release government data on retail sales, a key gauge to overall economic activity.
The U.S. will also unveil a report on manufacturing activity in New York, as well as government data on net long-term securities transactions and business inventories.