Investing.com - The U.S. dollar remained lower against its major counterparts in holiday-thinned trade on Monday, but safe haven demand looked set to remain supported as concerns over rising Spanish borrowing costs weighed on investor sentiment.
During European afternoon trade, the dollar trimmed losses against the euro, with EUR/USD up just 0.16% to trade at 1.2536, off an earlier high of 1.2625.
The yield on Spain’s 10-year bond rose to 6.47% on Monday, the highest this year and a level considered unsustainable in the long run, after closing at 6.34% on Friday.
The spike in long-term borrowing costs came after Spain’s government announced Sunday that it was to recapitalize one of the country’s largest commercial lenders, Bankia, sparking fears over the rising cost of bank rescues on government spending.
Sentiment on the euro was boosted earlier as fears over the possibility of a Greek exit from the euro zone subsided after weekend opinion polls showed increasing support for pro-bailout party New Democracy ahead of elections due to be held on June 17.
The greenback was lower against the pound, with GBP/USD rising 0.16% to hit 1.5690.
Elsewhere, the greenback was weaker against the yen and the Swiss franc, with USD/JPY shedding 0.28% to hit 79.44 and USD/CHF slipping 0.11% to hit 0.9585.
Earlier Monday, the minutes of the Bank of Japan’s April 27 meeting said that policymakers agreed to ease monetary policy in order to ensure the continued economic recovery, but said that the central bank needs to counter the “misunderstanding” in markets that easing will automatically continue until the bank’s 1% inflation target is met.
The greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD sliding 0.36% to hit 1.0255, AUD/USD advancing 0.89% to hit 0.9845 and NZD/USD jumping 0.94% to hit 0.7608.
In Australia, central bank Governor Glenn Stevens said that in addition to the debt crisis in the euro zone, China’s slowing growth poses a threat to the Australian economy and must be closely monitored.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.28%, to trade at 82.30.
Trade volumes looked likely to remain light on Monday, with markets in the U.S. closed for the Memorial Day holiday.
During European afternoon trade, the dollar trimmed losses against the euro, with EUR/USD up just 0.16% to trade at 1.2536, off an earlier high of 1.2625.
The yield on Spain’s 10-year bond rose to 6.47% on Monday, the highest this year and a level considered unsustainable in the long run, after closing at 6.34% on Friday.
The spike in long-term borrowing costs came after Spain’s government announced Sunday that it was to recapitalize one of the country’s largest commercial lenders, Bankia, sparking fears over the rising cost of bank rescues on government spending.
Sentiment on the euro was boosted earlier as fears over the possibility of a Greek exit from the euro zone subsided after weekend opinion polls showed increasing support for pro-bailout party New Democracy ahead of elections due to be held on June 17.
The greenback was lower against the pound, with GBP/USD rising 0.16% to hit 1.5690.
Elsewhere, the greenback was weaker against the yen and the Swiss franc, with USD/JPY shedding 0.28% to hit 79.44 and USD/CHF slipping 0.11% to hit 0.9585.
Earlier Monday, the minutes of the Bank of Japan’s April 27 meeting said that policymakers agreed to ease monetary policy in order to ensure the continued economic recovery, but said that the central bank needs to counter the “misunderstanding” in markets that easing will automatically continue until the bank’s 1% inflation target is met.
The greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD sliding 0.36% to hit 1.0255, AUD/USD advancing 0.89% to hit 0.9845 and NZD/USD jumping 0.94% to hit 0.7608.
In Australia, central bank Governor Glenn Stevens said that in addition to the debt crisis in the euro zone, China’s slowing growth poses a threat to the Australian economy and must be closely monitored.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.28%, to trade at 82.30.
Trade volumes looked likely to remain light on Monday, with markets in the U.S. closed for the Memorial Day holiday.