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Forex - Dollar mixed against rivals as euro comes under pressure

Published 02/14/2011, 08:07 AM
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Investing.com – The U.S. dollar was mixed against its major counterparts on Monday, as the euro fell sharply, weighed by persistent concerns over the sovereign debt crisis in the single-currency bloc.

During European afternoon trade, the greenback was up against the euro, with EUR/USD tumbling 0.78% to hit 1.3442.

The euro’s losses came following reports that talks to come up with a rescue deal for ailing German lender WestLB stalled over the weekend, as they entered the final stretch to present a restructuring plan to the European Commission.

The greenback was also up against the pound, with GBP/USD dipping 0.04% to hit 1.5999.

Elsewhere, the greenback was almost unchanged against the yen and the Swiss franc, with USD/JPY easing down 0.01% to hit 83.42 and USD/CHF sliding 0.06% to hit 0.9726.

Earlier in the day, official data showed that Japan’s gross domestic product fell less-than-estimated in the fourth quarter, declining by a seasonally adjusted 0.3%, after rising by a revised 0.8% in the preceding quarter, beating expectations for a decline of 0.5%.

Meanwhile, the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.11% to hit 0.9884, AUD/USD sliding 0.15% to hit 1.0007 and NZD/USD shedding 0.69% to hit 0.7551.

Earlier Monday, official data showed that Australian home-loan approvals rose more-than-expected in December while a separate report showed that retail sales in New Zealand fell more-than-expected in December.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.53%.

Later in the day, European finance ministers were to meet to discuss strengthening the regions EUR440 billion rescue fund. However, Germany remained reluctant to bolster the facility without euro zone commitments on closer economic coordination.

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