Dollar pushes broadly higher ahead of Bernanke

Published 07/16/2012, 04:36 AM
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Investing.com - The U.S. dollar pushed higher against most of its major counterparts on Monday, as investors looked ahead to testimony by Federal Reserve Chairman Ben Bernanke, while sustained concerns over the euro zone debt crisis dampened sentiment.

During European morning trade, the dollar was higher against the euro, with EUR/USD slipping 0.17% to hit 1.2227.

Investors were looking ahead to Bernanke's testimony on the economic outlook to the U.S. Senate on Tuesday and Wednesday, amid ongoing speculation over whether the central bank will introduce more easing measures to stimulate the economy.

In June, Bernanke said the Fed remained prepared to take additional steps to support economic growth if necessary, including additional asset purchases.

In the euro zone, Germany’s constitutional court announced earlier that it will deliver a ruling on whether the euro zone’s permanent bailout fund contravenes the German constitution on September 12, disappointing hopes for an earlier decision.

The greenback was also higher against the pound, with GBP/USD down 0.21% to hit 1.5543.

Sterling remained somewhat supported after the Bank of England announced a new GBP80 billion 'funding for lending' program on Friday, which will offer cheaper loans to households and businesses.

Elsewhere, the greenback was down against the broadly firmer yen, with USD/JPY losing 0.15% to trade at 79.06, but was higher against the Swiss franc, with USD/CHF adding 0.18% to hit 0.9822.

The greenback was rangebound against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.04% to 1.0141, AUD/USD edging up 0.02% to 1.0228 and NZD/USD adding 0.06% to hit 0.7962.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, eased up 0.11%, to 83.53.

Later in the day, the U.S. was to publish official data on retail sales and business inventories, as well as a report on manufacturing activity in New York.


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