Investing.com - The U.S. dollar extended modest gains against most of its major counterparts on Monday, but gains looked set to remain limited ahead of a second liquidity boosting operation by the European Central Bank later in the week.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD shedding 0.40% to hit 1.3394.
Sentiment on the euro was hit after a weekend meeting of the Group of 20 nations postponed a decision on increasing the resources of the International Monetary Fund in order to tackle the euro zone’s debt crisis and said any decision on outside help will be conditional upon on European governments increasing the size of the region’s debt firewall.
Germany has remained opposed to enlarging the size of the European Stability Mechanism, the permanent euro zone bailout fund that is to become active this year.
Risk appetite was also weighed by concerns that the recent rally in oil prices could create a drag on the global economic recovery.
The greenback was also higher against the pound, with GBP/USD sliding 0.19% to hit 1.5841.
The greenback retreated from a nine-month high against yen but pushed higher against the Swiss franc, with USD/JPY falling 0.82% to hit 80.53 and USD/CHF climbing 0.41% to hit 0.8996.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.35% to hit 1.0028, AUD/USD losing 0.14% to hit 1.0681 and NZD/USD slipping 0.19% to hit 0.8343.
Earlier in the day, official data showed that New Zealand’s trade balance swung to a deficit of NZD199 million in January, from a surplus of NZD306 million the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, added 0.20% to hit 78.64.
Later in the day, Germany’s parliament was to hold an extraordinary session to vote on Greece’s second bailout, which was already approved by euro zone finance ministers last week, while the U.S. was to publish industry data on pending home sales.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD shedding 0.40% to hit 1.3394.
Sentiment on the euro was hit after a weekend meeting of the Group of 20 nations postponed a decision on increasing the resources of the International Monetary Fund in order to tackle the euro zone’s debt crisis and said any decision on outside help will be conditional upon on European governments increasing the size of the region’s debt firewall.
Germany has remained opposed to enlarging the size of the European Stability Mechanism, the permanent euro zone bailout fund that is to become active this year.
Risk appetite was also weighed by concerns that the recent rally in oil prices could create a drag on the global economic recovery.
The greenback was also higher against the pound, with GBP/USD sliding 0.19% to hit 1.5841.
The greenback retreated from a nine-month high against yen but pushed higher against the Swiss franc, with USD/JPY falling 0.82% to hit 80.53 and USD/CHF climbing 0.41% to hit 0.8996.
Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.35% to hit 1.0028, AUD/USD losing 0.14% to hit 1.0681 and NZD/USD slipping 0.19% to hit 0.8343.
Earlier in the day, official data showed that New Zealand’s trade balance swung to a deficit of NZD199 million in January, from a surplus of NZD306 million the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, added 0.20% to hit 78.64.
Later in the day, Germany’s parliament was to hold an extraordinary session to vote on Greece’s second bailout, which was already approved by euro zone finance ministers last week, while the U.S. was to publish industry data on pending home sales.