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Dollar steady against euro, higher vs. other majors

Published 02/11/2013, 10:52 AM
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Investing.com - The dollar was almost unchanged against the euro on Monday and was broadly higher against the other major currencies as concerns over political tensions in the euro zone and jitters ahead of an upcoming G20 meeting curbed risk appetite.

During U.S. morning trade, the greenback was little changed close to two-week lows against the euro, with EUR/USD inching up 0.07% to 1.3377.

The euro hit session highs against the greenback earlier as the single currency regained ground following a broad based selloff late last week.

The euro retreated broadly after the European Central Bank said Thursday that it would monitor developments in the markets to see if the stronger euro had an effect on the inflation outlook.

Sentiment on the single currency was dented by uncertainty ahead of upcoming elections in Italy and renewed political tensions in Spain, where the government has become embroiled in a corruption scandal.

The greenback reproached two-and-a-half year highs against the yen, with USD/JPY rising 0.68% to 93.33 as expectations for more aggressive easing by the Bank of Japan remained intact.

Investors were looking ahead to the outcome of Thursday’s BoJ policy meeting, as well as the G20 meeting starting Friday, which was expected to include discussions over competitive currency devaluation.

The greenback was hit session highs against the pound, with GBP/USD tumbling 0.89% to 1.5656.

Sentiment on sterling was hit by expectations that the Bank of England will cut growth forecasts in its upcoming quarterly inflation report this week and warn that inflation is likely to remain above the bank’s 2% target until early 2015.

Elsewhere, the greenback pushed higher against the Swiss franc, with USD/CHF rising 0.22% to 0.9189.

The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.41% to 1.0069, AUD/USD falling 0.49% to 1.0273 and NZD/USD sliding 0.14% to 0.8346.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.16% to 80.42.

Investors were awaiting news from a meeting of the eurogroup of euro zone finance ministers in Brussels, following last week’s European Union summit.

EU leaders reached an agreement on a seven year budget on Friday. European governments will contribute slightly less to this budget than they did for the previous seven year budget, following calls to curb spending by Brussels.



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