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Dollar pushes higher vs. rivals ahead of U.S. data

Published 11/28/2012, 08:19 AM
Updated 11/28/2012, 08:20 AM
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Investing.com - The U.S. dollar pushed higher against the other major currencies on Wednesday, ahead of the release of U.S. economic data, as concerns over Greece's ability to handle its new debt target and U.S. fiscal policy decisions continued to dominate.

During European afternoon trade, the dollar was higher against the euro, with EUR/USD shedding 0.42% to 1.2889.

Although international lenders agreed on a plan to cut Greek debt, which will allow the country to secure more financial aid and avoid a default, market scepticism grew over a lack of detail on how Athens will implement the reforms needed to meet its new targets.

Meanwhile, investors continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.

Sentiment weakened on Tuesday after Senate Majority Leader Harry Reid said he was frustrated by the lack of progress in talks over the U.S. budget impasse in Washington.

The greenback was also higher against the pound, with GBP/USD falling 0.29% to 1.5975.

Elsewhere, the greenback dropped against the yen, with USD/JPY declining 0.43% to trade at 81.79, and rose against the Swiss franc, with USD/CHF adding 0.32% to 0.9334.

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.03% to 0.9949, AUD/USD dipping 0.01% to 1.0446 and NZD/USD easing 0.07% to 0.8206.

In Australia, official data showed that construction work done rose by 1.7% in the third quarter, less than the expected 2.7% increase, following a 0.9% rise in the previous quarter.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.20% to 80.57.

Later in the day, the U.S. was to release official data on new home sales, as well as government data on crude oil inventories.


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