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Dollar broadly lower after Spanish bond auction

Published 04/19/2012, 05:05 AM
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Investing.com - The U.S. dollar was broadly lower against its major counterparts on Thursday, after an auction of Spanish government debt raised slightly more than the full targeted amount of EUR2.5 billion, while the yield on the country’s 10-year bonds remained below the 6% level.

During European morning trade, the dollar was lower against the euro, with EUR/USD up 0.11% to hit 1.3136.

Spain auctioned EUR1.11 billion of two-year bonds at an average yield of 3.46%, up from 2.06% at a similar auction last month and EUR1.42 billion of 10-year bonds at an average yield of 5.74%, up from 5.33% from a similar auction in March.

The greenback was lower against the pound, with GBP/USD rising 0.22% to hit 1.6055.

The pound strengthened against all of its major counterparts after Wednesday’s minutes of the Bank of England’s April meeting dampened expectations for more monetary easing from the central bank.

Elsewhere, the greenback was higher against the broadly weaker yen, with USD/JPY adding 0.28% to hit 81.47, but dipped against the Swiss franc, with USD/CHF slipping 0.08% to hit 0.9150.

The yen was pressured lower by ongoing expectations for further easing measures by the Bank of Japan, after the central bank's governor reaffirmed a commitment to monetary easing in order to meet Japan’s targeted rate of inflation.

Meanwhile, official data showed that Japan’s trade deficit widened more-than-expected in March, climbing to JPY0.62 trillion from a deficit of JPY0.32 trillion the previous month.

Analysts had expected the trade deficit to widen to JPY0.44 trillion last month.

The greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.27% to hit 0.9884, AUD/USD gaining 0.18% to hit 1.0375 and NZD/USD up 0.30% to hit 0.8183.

In New Zealand, official data showed that consumer price inflation rose 0.5% in the first quarter, after a 0.3% decline the previous quarter, slightly less than expectations for a 0.6% increase.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was lower by 0.08% at 79.65.

Later in the day, the U.S. was to release official data on unemployment claims, followed by industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.


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