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Forex - Dollar almost unchanged as euro finds support

Published 10/04/2011, 09:00 AM
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Investing.com – The U.S. dollar was almost unchanged against its major counterparts on Tuesday, as the euro firmed up in spite of a lack of progress by European leaders in tackling the region’s debt crisis.

During European afternoon trade, the greenback was slightly lower against the euro, with EUR/USD easing up 0.14% to hit 1.3194.

The single currency found support after France and Belgium said they would guarantee funding for troubled Franco-Belgian lender Dexia. Meanwhile, euro zone finance ministers were to meet later Tuesday, to discuss the implementation of a permanent bailout facility.

But the greenback was higher against the pound, with GBP/USD down 0.25% to hit 1.5392.

Earlier in the day, data showed that construction activity in the U.K. fell to a 10-month low in September, as demand in the housing sector remained sluggish. The data added to concerns that the Bank of England may implement fresh easing measures to support the flagging U.K. economy.

Elsewhere, the greenback edged higher against the yen and the Swiss franc with USD/JPY rising 0.18% to hit 76.75 and USD/CHF easing up 0.06% to hit 0.9221.

Japan's Finance Minister Jun Azumi reiterated a warning against speculators pushing the yen too high earlier, saying the recent moves by the euro against the yen were excessive.

Meanwhile, the greenback was up against its Canadian, Australian and New Zealand cousins, with USD/CAD easing up 0.09% to hit 1.0553, AUD/USD tumbling 0.89% to hit 0.9442 and NZD/USD dipping 0.08% to hit 0.7521.

The Reserve Bank of Australia said earlier that it was leaving interest rates unchanged at 4.75%, in light of the "very unsettled conditions in global financial markets."

Elsewhere, official data showed that Australian building approvals rose much more-than-expected in August, jumping 11.4%, far more than the forecast 1.1% increase.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched up 0.05% to hit 80.14.

Later in the day, the U.S. was to release official data on factory orders, while Federal Reserve Chairman Ben Bernanke was to testify to the Joint Economics Committee in Washington.

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