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Forex - Dollar mostly lower, but slightly higher against euro, yen

Published 07/14/2013, 09:01 PM
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Investing.com - The U.S. dollar traded lower against most of its major rivals to start the new week in Asia, but the greenback traded slightly higher against the euro and yen.

In Asian trading Monday, EUR/USD fell 0.07% to 1.3060. Last Friday, the euro came under pressure after ratings agency Fitch downgraded France from its triple-A rating, citing growing government debt levels and the weak outlook for economic growth.

France, the second-largest Euro zone economy behind Germany, becomes the latest major economy to have a major ratings agency lower its AAA rating, a fate that has befallen the U.S. and U.K. in recent years. Finland and Germany are the only euro countries with AAA ratings.

USD/JPY rose 0.06% to 99.32, but the pair slid 1.68% last week. The yen was boosted after the Bank of Japan left monetary policy on hold following its policy setting meeting on Thursday, in a widely anticipated decision.

The BoJ also upgraded its assessment of the economy, saying it is starting to moderately recover. Japanese markets are closed today for a national holiday.

GBP/USD inched up 0.02% to 1.5111 while USD/CHF rose 0.08% to 0.9471. USD/CAD fell 0.06% to 1.0393 despite slightly lower oil prices.

In U.S. economic news published last Friday, a Labor Department report showed U.S. wholesale prices rose 0.8% last month, the biggest gain since September 2012. That follows a 0.5% increase in May. Economists expected a June increase of 0.5%.

The Thomson Reuters/University of Michigan preliminary index of consumer sentiment fell to 83.9 in July from 84.1 in June. Economists expected an initial July reading of 84.7.

AUD/USD rose 0.14% to 0.9065 while NZD/USD added 0.22% to 0.7795 as Aussie and kiwi traders await China’s second-quarter GDP reading later Monday. China is the largest export market for both Australia and New Zealand.

The U.S. Dollar Index inched up 0.05% to 83.15.


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