Investing.com - The dollar was stronger against most of the world's major currencies Thursday after reports emerged that European banks have been depositing hefty sums of money with their central bank instead of lending it out, which fueled a euro selloff.
During Asian trading on Thursday, the greenback was up against the euro, with EUR/USD shedding 0.05% to hit 1.2935.
Reports from Europe indicated that banks are using the European Central Bank's overnight deposit facility heavily, making a record EUR452.03 billion in deposits recently.
The news fueled fears that lending remains tight and that the European debt crisis is far from abating.
Furthermore, terms at an Italian debt auction won praise by market observers, but another bond auction is due to take place later today and many remain on the sidelines waiting to see how investors treat the Italian government during the rest of the week.
The dollar was also stronger against the pound, with Cable falling 0.07% to hit 1.5448.
Meanwhile, the greenback was down 0.17% against the yen, with USD/JPY was trading at 77.80, and up against the Swiss franc, with USD/CHF up 0.06% at 0.9432.
The greenback was mixed against its counterparts in Canada, Australia and New Zealand, with USD/CAD down 0.04% at 1.0241, AUD/USD down 0.09% to 1.0084 and NZD/USD down 0.05% at 0.7686.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% at 80.94.
Later Thursday in the U.S., the government will release weekly jobless claims, while the Chicago Purchasing Managers' Index will reveal the economic health of the manufacturing sector in the Chicago area.
Also in the U.S., market watchers will pay attention to crude and gasoline inventories as well as pending home sales data.
In Europe, German inflation numbers will hit the wire, and the European Central Bank will also release data on private loans as well as on the level of the continent's money supply.
In Asia, South Korean inflation figures are due out later Thursday as is Japan's Manufacturing Purchasing Managers' Index.
During Asian trading on Thursday, the greenback was up against the euro, with EUR/USD shedding 0.05% to hit 1.2935.
Reports from Europe indicated that banks are using the European Central Bank's overnight deposit facility heavily, making a record EUR452.03 billion in deposits recently.
The news fueled fears that lending remains tight and that the European debt crisis is far from abating.
Furthermore, terms at an Italian debt auction won praise by market observers, but another bond auction is due to take place later today and many remain on the sidelines waiting to see how investors treat the Italian government during the rest of the week.
The dollar was also stronger against the pound, with Cable falling 0.07% to hit 1.5448.
Meanwhile, the greenback was down 0.17% against the yen, with USD/JPY was trading at 77.80, and up against the Swiss franc, with USD/CHF up 0.06% at 0.9432.
The greenback was mixed against its counterparts in Canada, Australia and New Zealand, with USD/CAD down 0.04% at 1.0241, AUD/USD down 0.09% to 1.0084 and NZD/USD down 0.05% at 0.7686.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% at 80.94.
Later Thursday in the U.S., the government will release weekly jobless claims, while the Chicago Purchasing Managers' Index will reveal the economic health of the manufacturing sector in the Chicago area.
Also in the U.S., market watchers will pay attention to crude and gasoline inventories as well as pending home sales data.
In Europe, German inflation numbers will hit the wire, and the European Central Bank will also release data on private loans as well as on the level of the continent's money supply.
In Asia, South Korean inflation figures are due out later Thursday as is Japan's Manufacturing Purchasing Managers' Index.