Dollar mixed vs. rivals amid Greece worries

Published 03/12/2012, 05:48 AM
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Investing.com - The U.S. dollar was mixed against its major counterparts on Monday, as markets remained jittery after Greece’s credit event ruling and ahead of a meeting of euro zone finance ministers in Brussels later in the day.

During European morning trade, the dollar was steady against the euro, with EUR/USD edging up 0.06% to hit 1.3131.

The euro was hit on Friday after the Department of Labor said the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain. The unemployment rate held steady at a three year low of 8.3%.

The strong data diminished expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.

The shared currency also remained under pressure after Friday’s ruling by the International Swaps and Derivatives Association, which said that Greece’s debt swap with private creditors constituted a “credit event” that would activate credit-default swaps, designed to protect investors against losses on Greek sovereign debt.

The greenback was lower against the pound, with GBP/USD adding 0.07% to hit 1.5685.

The greenback was also lower against the yen and the Swiss franc, with USD/JPY falling 0.26% to hit 82.27 and USD/CHF edging down 0.07% to hit 0.9182.

Investors eyed the Bank of Japan’s monetary policy statement on Tuesday as the bank is expected to refrain from further easing.

Earlier in the day, Japan's prime minister said that the yen remains overvalued despite its recent steep fall from historic peaks versus the U.S. dollar, while the country's finance minister reiterated a warning against speculative currency moves.

Also Monday, government data showed that core machinery orders in Japan rose more-than-expected in January, rising 3.4% after a 7.1% decline the previous month.

Elsewhere, the greenback was steady against its Canadian counterpart and higher against its Australian and New Zealand cousins, with USD/CAD easing 0.01% to hit 0.9905, AUD/USD declining 0.37% to hit 1.0537 and NZD/USD retreating 0.40% to hit 0.8181.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged down 0.11% to hit 80.34.

Later in the day, euro zone finance ministers were to hold talks in Brussels, to give their final approval to a EUR130 billion bailout for Greece.

Ministers were also likely to discuss Spain, after Prime Minister Mariano Rajoy announced earlier this month that the country would cut its public deficit to 5.8% of annual output, instead of the planned 4.4% this year.


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