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Forex - Dollar broadly lower vs. rivals as CPI data boots euro

Published 01/31/2011, 08:19 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Monday, as the greenbacks gains in the wake of political turmoil in Egypt appeared to be tapering off.

During European early afternoon trade, the greenback was down against the euro, with EUR/USD advancing 0.59% to hit 1.3692.

Earlier in the day, preliminary data estimated that consumer price inflation in the euro zone increased more-than-expected in January, rising to the highest level since October 2008.

The greenback was also lower against the pound, with GBP/USD climbing 0.27% to hit 1.5903.

The pound was boosted after Bank of England policy maker Martin Weale said the central bank should raise interest rates to prevent inflation from becoming entrenched.

Elsewhere, the greenback was up against the yen but down against the Swiss franc, with USD/JPY edging up 0.02% to hit 82.14 and USD/CHF slipping 0.05% to hit 0.9413.

Meanwhile, the greenback was down against its Canadian and Australian counterparts but up against its New Zealand cousin, with USD/CAD shedding 0.24% to hit 0.9984, AUD/USD easing up 0.11% to hit 0.9951 and NZD/USD shedding 0.33% to hit 0.7709.

Earlier Monday, official data showed that New Zealand’s home-building approvals fell to a 23-month low in December while a separate report showed that the country’s trade deficit widened unexpectedly in December.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.49%.

Later in the day, the U.S. was to publish official data on personal consumption expenditure as well as data on personal incomes and spending. The country was also to publish a report on manufacturing growth in Chicago.

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