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Forex - Dollar down vs. most rivals as EU talks get underway

Published 03/25/2010, 12:20 PM
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Investing.com – The U.S. dollar was down against most other major currencies on Thursday, as European leaders gathered for a two-day EU summit at which they were to discuss how to resolve Greece's debt crisis.

During early U.S. trade, the greenback slid versus the euro, with EUR/USD advancing 0.19% to hit 1.3339, after European Central Bank President Jean-Claude Trichet said the bank would leave emergency collateral rules in place into 2011, softening his stance as Athens struggles to cut its ballooning budget deficit.

Earlier in the day, European Commission President Jose Manuel Barroso said in Brussels that it was inconceivable that EU leaders would not reach a consensus on Greece's debt problems the summit.

The dollar was also down against sterling, with GBP/USD rising 0.08% to hit 1.4876, after official data showed that U.K. retail sales rose to an almost two-year high in February from the previous month, exceeding forecasts.

In addition, the greenback slipped against the Swiss franc, with USD/CHF dropping 0.25% to hit 1.0702.
 
The U.S. dollar was also down versus its Australian, Canadian and Kiwi counterparts: AUD/USD gained 0.46% to hit 0.9116, USD/CAD slumped 0.66% to hit 1.02 and NZD/USD jumped 0.86% to reach 0.708.

But the greenback rose against the yen, with USD/JPY climbing 0.44% to reach 92.7.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.15%.

Also Thursday, Federal Reserve Chairman Ben Bernanke told Congress that record-low interest rates were still needed to spur the U.S. economic recovery. The Fed chief's comments came after a government report showed that the number of U.S. workers claiming unemployment benefits fell to its lowest level since December 2008 last week.

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