Dollar broadly lower with Bernanke in focus

Published 07/17/2012, 04:42 AM
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Investing.com - The U.S. dollar was broadly lower against the other major currencies on Tuesday, amid expectations that Federal Reserve Chairman Ben Bernanke could indicate the need for further stimulus in testimony to the U.S. Senate later in the day.

During European morning trade, the dollar was down against the euro, with EUR/USD up 0.26% to 1.2304.

Expectations for another round of quantitative easing from the Fed were boosted on Monday after official data showing a third consecutive monthly decline in U.S. retail sales in June.

The greenback was little changed against the pound, with GBP/USD dipping 0.02% to hit 1.5634.

In the U.K., official data showed that consumer price inflation rose at the slowest pace since November 2009 in June, up 2.4% year-on-year after a 2.8% increase in May.

Elsewhere, the greenback was higher against the yen, with USD/JPY adding 0.19% to trade at 79.01, but was lower against the Swiss franc, with USD/CHF shedding 0.29% to hit 0.9758.

The yen eased after Japanese Finance Minister Jun Azumi indicated that the government remained prepared to intervene to stem the appreciation of the currency.

The greenback weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.04% to 1.0145, AUD/USD rising 0.50% to 1.0300 and NZD/USD adding 0.21% to hit 0.7995.

The Australian dollar found support earlier after the minutes of the Reserve Bank of Australia’s July meeting indicated that policymakers are not planning any further rate cuts in the coming months.

Elsewhere, official data showed that consumer price inflation in New Zealand rose less-than-expected in the three months to June, adding to the view that the central bank will keep interest rates on hold in the coming months.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.15% to 83.10.

Later Tuesday, the U.S. was to publish official data on consumer price inflation, as well as reports on the capacity utilization rate and industrial production.



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