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Forex - Dollar gains in quiet trading, moves lower against euro

Published 02/11/2013, 03:34 PM
Updated 02/11/2013, 03:35 PM
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Investing.com - The dollar traded largely higher against most other currencies on Monday in quiet trading, with many Asian markets closed on holiday.

The greenback moved lower against the euro after a major European Central Bank policymaker said the euro wasn't overvalued despite its recent strengthening trend.

In U.S. trading on Monday, EUR/USD was up 0.12% at 1.3385.

European Central Bank council member Jens Weidmann said earlier that the euro hasn't become too seriously overvalued despite its recent strengthening trend and urged eurozone governments against calling for measures to weaken the currency.

Weidmann's words sent the euro gaining, especially against the dollar and the yen.

French output numbers fueled the single currency's rally as well.

France's industrial output contracted by 0.1% in December from the month before, less than market calls for a 0.2% contraction though still down from November's 0.5% gain.

Trading was quiet, with many Asian markets closed in observance of New Year holidays.

The dollar did see some support on political concerns in Spain, where Prime Minister Mariano Rajoy has faced calls to resign in wake of allegations that he and senior officials in the ruling Popular Party took kickbacks.

Meanwhile, eurozone finance ministers are meeting in Brussels to brainstorm ways to firewall and extinguish the debt crisis, which supported the single currency against the greenback.

E.U. leaders recently agreed to common budget cuts, under which European governments will contribute slightly less to the eurozone's umbrella spending package.

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.88% at 1.5658.

The dollar rose against the yen, with USD/JPY trading up 1.14% at 93.77 and up against the Swiss franc, with USD/CHF trading up 0.28% at 0.9196.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.17% at 1.0047, AUD/USD down 0.41% at 1.0283 and NZD/USD trading up 0.10% at 0.8368.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.19% at 80.44.

On Tuesday, the U.S. is to publish data on the federal budget balance.






 

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