Investing.com - The U.S. dollar was mixed against its global counterparts on Wednesday, after the European Central Bank's second long-term liquidity operation met with robust demand, bolstering demand for higher yielding assets.
During European afternoon trade, the dollar was slightly higher against the euro, with EUR/USD slipping 0.09% to hit 1.3443.
The ECB said that it had allotted EUR529 billion in three-year loans to European lenders, after receiving bids from 800 banks, significantly more than in the bank’s first long term refinancing operation late last year.
In December, the EBC issued EUR489 billion in three-year loans to 523 banks, averting a liquidity shortage in the euro zone’s banking system and easing pressure on the region’s bond markets.
The injection of liquidity was expected to support demand for riskier assets but the increased demand sparked concerns that banks in the region expect liquidity pressures to continue.
Elsewhere, Finland’s parliament approved Greece’s second bailout package, one day after Germany’s parliament approved the bailout by a comfortable margin.
But the greenback was lower against the pound, with GBP/USD adding 0.24% to hit 1.5937.
In testimony before the U.K. parliament’s Treasury Committee earlier, Bank of England Governor Mervyn King dampened expectations for further monetary easing and said the ECB’s liquidity injection has removed the possibility of a bank run in the euro zone.
The greenback was lower against the yen but edged higher against the Swiss franc, with USD/JPY shedding 0.21% to hit 80.29 and USD/CHF easing up 0.10% to hit 0.8964.
Earlier in the day, official data showed a larger-than-forecast increase in Japanese industrial production in January and indicated that output was expected to continue to rise in the coming months.
In Switzerland, a report from the KOF Economic Institute showed that the country’s economic barometer improved slightly in February after entering the negative territory in January for the first time since 2009.
The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD tumbling 0.78% to hit 0.9875, AUD/USD advancing 0.65% to hit 1.0814 and NZD/USD rallying 0.96% to hit 0.8455.
Official data earlier showed that Australia’s retail sales rose for the first time in three months in January, gaining 0.3%.
In New Zealand, data showed that business confidence rose significantly more-than-expected in February, while buildings consents jumped higher in January.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.02% to hit 78.22.
Later in the day, the U.S. was to release a preliminary report on fourth-quarter gross domestic product, while Federal Reserve Chairman Ben Bernanke was due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.
During European afternoon trade, the dollar was slightly higher against the euro, with EUR/USD slipping 0.09% to hit 1.3443.
The ECB said that it had allotted EUR529 billion in three-year loans to European lenders, after receiving bids from 800 banks, significantly more than in the bank’s first long term refinancing operation late last year.
In December, the EBC issued EUR489 billion in three-year loans to 523 banks, averting a liquidity shortage in the euro zone’s banking system and easing pressure on the region’s bond markets.
The injection of liquidity was expected to support demand for riskier assets but the increased demand sparked concerns that banks in the region expect liquidity pressures to continue.
Elsewhere, Finland’s parliament approved Greece’s second bailout package, one day after Germany’s parliament approved the bailout by a comfortable margin.
But the greenback was lower against the pound, with GBP/USD adding 0.24% to hit 1.5937.
In testimony before the U.K. parliament’s Treasury Committee earlier, Bank of England Governor Mervyn King dampened expectations for further monetary easing and said the ECB’s liquidity injection has removed the possibility of a bank run in the euro zone.
The greenback was lower against the yen but edged higher against the Swiss franc, with USD/JPY shedding 0.21% to hit 80.29 and USD/CHF easing up 0.10% to hit 0.8964.
Earlier in the day, official data showed a larger-than-forecast increase in Japanese industrial production in January and indicated that output was expected to continue to rise in the coming months.
In Switzerland, a report from the KOF Economic Institute showed that the country’s economic barometer improved slightly in February after entering the negative territory in January for the first time since 2009.
The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD tumbling 0.78% to hit 0.9875, AUD/USD advancing 0.65% to hit 1.0814 and NZD/USD rallying 0.96% to hit 0.8455.
Official data earlier showed that Australia’s retail sales rose for the first time in three months in January, gaining 0.3%.
In New Zealand, data showed that business confidence rose significantly more-than-expected in February, while buildings consents jumped higher in January.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.02% to hit 78.22.
Later in the day, the U.S. was to release a preliminary report on fourth-quarter gross domestic product, while Federal Reserve Chairman Ben Bernanke was due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.