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Forex - Dollar down against rivals as Europe debt fears wane

Published 06/15/2010, 12:00 PM
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Investing.com – The U.S. dollar was down against its major rivals on Tuesday as fears over Europe's debt crisis waned after Belgium and Spain sold government debt and Ireland issued bonds in auctions.

During European afternoon trade, the greenback was down against the euro, with EUR/USD jumping 0.71% to hit 1.2308.

Earlier in the day, Spain's Treasury raised EUR 5.2 billion at its 12 and 18-month bond auction, while Belgium raised EUR 2.5 billion in a heavily oversubscribed auction, and Ireland sold EUR 1.5 billion in bonds.

Meanwhile, the greenback was down against sterling, with GBP/USD rising 0.51% to hit 1.4814 after official data showed that U.K. consumer price inflation rose at a slower pace than expected in May.

The greenback was also down against the yen and the loonie, with USD/JPY shedding 0.44% to hit 91.16, and USD/CAD shedding 0.47% to hit 1.029.

Earlier Tuesday, a report by Statistics Canada said labor productivity, a measure of economic output per hour of labor, rose 0.7% in the first quarter of 2010, following an increase of 1.2% in the final quarter of 2009, whose figure was revised down from 1.4%.

Meanwhile, the greenback was also down against its Australian and New Zealand counterparts, with AUD/USD climbing 0.22% to hit 0.8604 and NZD/USD gaining 0.12% to hit 0.6956. In addition, the dollar was down versus the Swiss franc, with USD/CHF plunging 0.97% to hit 1.1312.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.45%.

Also Tuesday, official data showed that while manufacturing activity in New York State rose at a slower rate than expected in June, foreign purchases of U.S. securities grew at a faster pace than forecast in April.

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