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Dollar mostly higher vs. rivals, U.S. data ahead

Published 10/22/2014, 06:21 AM
Dollar regains tractions as markets eye U.S. data
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Investing.com - The dollar was mostly higher against a basket of other major currencies on Wednesday, as rumors of potential stimulus measures by the European Central Bank continued to weigh, while markets eyed the release of U.S. data on consumer prices later in the day.

EUR/USD slipped 0.20% to 1.2691, just above a one-week low of 1.2681 hit earlier in the session.

Sentiment on the euro remained vulnerable after Reuters reported on Tuesday that the ECB is considering buying bonds issued by companies, or corporate debt, to help stimulate the ailing euro zone economy.

The report said the bank could activate the new stimulus plan as soon as December and start bond purchases by early next year.

Meanwhile, the dollar remained supported after a report by the National Association of Realtors on Tuesday showed that U.S. existing home sales rose to 5.17 million in September, the highest level of the year.

GBP/USD dropped 0.42% to 1.6046 after the Bank of England's latest policy meeting showed an ongoing split on the necessity of raising interest rates.

The minutes of the BoE's October policy meeting showed that members voted unanimously to keep the asset puschase facility program on hold.

However, members Martin Weale and Ian McCafferty voted for the third consecutive time to raise interest rates to 0.75% from a record-low 0.5%.

The report came after BoE chief economist Andrew Haldane said Friday that he was in favor of keeping rates lower for longer due to uncertainties over the outlook for both domestic and global growth.

Elsewhere, the yen held steady, with USD/JPY at 106.99, while the Swiss franc edged lower, with USD/CHF adding 0.15% to 0.9504.

The commodity linked dollars were mixed, with AUD/USD up 0.07% to 0.8783, NZD/USD rising 0.13% to 0.7972, while USD/CAD edged up 0.17% to 1.1241.

Earlier Wednesday, official data showed that Australia's consumer price inflation rose 0.5% in the third quarter, more than the expected 0.4% increase, after a 0.5% gain in the three months to June.

Year-on-year, Australia's CPI rose 2.3% in the last quarter, in line with expectations, after an increase of 3.0% in the second quarter.

The dollar index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.21% to 85.63, the highest since October 15.

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