Dollar steady amid Greece aid uncertainty

Published 11/13/2012, 11:04 AM
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Investing.com - The U.S. dollar was steady against the other major currencies on Tuesday, as amid ongoing uncertainty over aid payments to Greece and concerns over the U.S. fiscal cliff.

During U.S. morning trade, the dollar was little changed against the euro, with EUR/USD inching up 0.01% to 1.2710.

The euro came off two-month lows against the greenback after German newspaper Bild reported that Greece could receive EUR44 billion of financial aid in one payment, citing German government sources.

Sentiment on the single currency was also boosted after Greece sold EUR4.06 billion of short term government bonds, which should help Athens to repay EUR5 billion of debts maturing on Friday.

But investors remained jittery amid concerns over a delayed bailout payment for Greece as officials from the International Monetary Fund and Europe disagreed on how best to reduce the country’s debt to manageable levels.

A decision on unlocking Greece’s next tranche of aid, worth EUR31.5 billion, has been postponed until 20 November.

The shared currency fell to session lows against the greenback earlier after data showed that the ZEW index of German economic sentiment deteriorated unexpectedly this month, adding to concerns over a slowdown in the euro zone’s largest economy.

Meanwhile, ongoing concerns over the U.S. fiscal cliff continued to underpin demand for the greenback.

The greenback was slightly lower against the pound, with GBP/USD easing up 0.08% to 1.5890.

The pound found some support after official data showed that U.K. consumer prices rose sharply in October, as a result of increases in the cost of food, transport and university fees.

The Office for National Statistics said the annual rate of consumer price inflation accelerated to 2.7% in October from 2.2% in September and a five month high.

Elsewhere, the greenback dipped lower against the yen and the Swiss franc, with USD/JPY inching down 0.06% to 79.45 and USD/CHF slipping 0.08% to 0.9473.

The greenback was little changed against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.15% to 1.0012, AUD/USD inching up 0.09% to 1.0436 and NZD/USD rising 0.26% to 0.8195.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.01% to 81.13.

Later Tuesday, the U.S. was to release official data on the federal budget balance.



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