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Forex - Dollar up vs. rivals on report that Fed easing to be gradual

Published 10/27/2010, 05:26 AM
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Investing.com – The U.S. dollar was up against all of the other major currencies on Wednesday, after a report that that a second round of quantitative easing by the Federal Reserve would be more gradual than previously expected.

During European morning trade, the greenback was up against the euro, with EUR/USD shedding 0.36% to hit 1.3809. Earlier in the day, official data showed that euro zone M3 money supply fell unexpectedly in September.

The greenback was also up against the pound, with GBP/USD slipping 0.14% to hit 1.5821.

In addition, the greenback was up against the yen and the Swiss franc, with USD/JPY gaining 0.35% to hit 81.73 and USD/CHF surging 0.59% to hit 0.9901.

The greenback was also up against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.53% to hit 1.0292, AUD/USD plunging 1.36% to hit 0.9719 and NZD/USD falling 0.36% to hit 0.7463.

Earlier in the day, official data showed that Australia’s CPI rose less-than-expected in the third quarter while a separate report showed that business confidence in New Zealand picked up in October.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.38%.

Late Tuesday, a report in the Wall Street Journal said that the Fed was likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, contrary to market expectations of purchases in excess of USD 1 trillion.

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