Dollar eases as sentiment firms on fresh ECB hopes

Published 08/20/2012, 04:36 AM
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Investing.com - The U.S. dollar edged lower against the other major currencies in quiet trade on Monday, as market sentiment was supported by reports that the European Central Bank may set limits on the yields of euro zone government bonds.

During European morning trade, the dollar was slightly lower against the euro, with EUR/USD rising 0.15% to 1.2350.

The euro found support after German magazine Der Spiegel reported Sunday that the ECB may set an interest rate threshold on purchases of euro-area sovereign debt at its next policy meeting in September, beyond which its bond buying program would be activated.

The yield on Spanish 10-year bonds was at 6.19% on Monday, down from 6.49% late Friday.

Investors were looking ahead to a series of euro zone meetings later in the week to discuss measures to stem the region’s debt crisis.

The greenback was lower against the pound, with GBP/USD easing up 0.06% to 1.5705.

Elsewhere, the greenback eased off a five-week high against the yen, with USD/JPY dipping 0.08% to 79.47 and slid lower against the Swiss franc, with USD/CHF down 0.15% to 0.9723.

The greenback was weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.05% to 0.9884, AUD/USD climbing 0.39% to 1.0458 and NZD/USD up 0.23% to 0.8092.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slipped 0.10% to 82.51.

Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.


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