Dollar broadly lower as risk appetite recovers

Published 10/31/2012, 05:38 AM
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Investing.com - The U.S. dollar was broadly lower against the other major currencies on Wednesday, as market sentiment recovered and investors waited for U.S. markets to resume trading after a two-day market shutdown for Hurricane Sandy.

During European morning trade, the dollar was lower against the euro, with EUR/USD up 0.31% to 1.2996.

The single currency was boosted after official data showed that German retail sales rose 1.5% in September, the fastest pace since June 2011, easily beating expectations for a 0.3% increase.

Investors were eyeing euro zone unemployment and inflation data later in the session, amid concerns over the impact of the region’s crisis on growth.

Euro zone finance ministers were to hold a conference call later in the day to discuss Greece’s progress on meeting austerity targets, but no decision on when the country will receive the next tranche of its bailout was expected.

Meanwhile, investors continued to await any sign that Spain is preparing to request a bailout, which would activate a bond purchasing program by the European Central Bank, aimed at lowering the borrowing costs of distressed euro zone states.

The greenback was also lower against the pound, with GBP/USD rising 0.32% to 1.6124.

Elsewhere, the greenback edged higher against the yen, with USD/JPY easing up 0.16% to 79.75, but slid lower against the Swiss franc, with USD/CHF down 0.34% to 0.9290.

The greenback turned lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD sliding 0.18% to 0.9975, AUD/USD climbing 0.29% to 1.0394 and NZD/USD gaining 0.19% to trade at 0.8222.

The Australian dollar found support after official data showed that building approvals in Australia rose by 7.8% in September, far more than the expected 1.1% increase.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26% to 79.80.

Later Wednesday, the U.S. was to produce official data on manufacturing activity in Chicago, as well as a government report on crude oil inventories.



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