Dollar steady as investors await Spain bailout devlopments

Published 10/15/2012, 05:24 AM
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Investing.com - The U.S. dollar was steady against the other major currencies on Monday, as uncertainty over Spain’s position on requesting a bailout from its euro zone partners continued to weigh on demand for riskier assets.

During European morning trade, the dollar was fractionally lower against the euro, with EUR/USD inching up 0.05% to 1.2959.

The euro remained under pressure amid some disappointment in markets after Madrid did not request financial aid over the weekend and a request for a bailout is now seen as increasingly unlikely ahead of regional elections on October 21.

Elsewhere in the euro zone, Greek Prime Minister Antonis Samaras said Sunday his country was facing the “last hurdle” before recovery and expressed confidence that the government will reach an agreement with international creditors ahead of Thursday’s European Union summit.

Worries over the outlook for global growth eased after China posted better-than-expected trade data over the weekend, with official data showing that the trade surplus unexpectedly widened in September as export demand increased.

The greenback edged higher against the pound, with GBP/USD dipping 0.07% to 1.6063.

Elsewhere, the greenback was higher against the yen, with USD/JPY up 0.30% to 78.67, but remained little changed against the Swiss franc, with USD/CHF inching up 0.01% to 0.9332.

Earlier Monday, official data showed that Swiss producer price inflation rose by 0.3% in September, slightly better than expectations for a 0.2% gain.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD losing 0.15% to trade at 0.9782, AUD/USD dipping 0.01% to 1.0231 and NZD/USD down 0.21% to 0.8146.

In Australia, official data showed that new home loan approvals were up 1.8% in August, compared to expectations for a 1.4% increase.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.01% to 79.78.

Later in the day, the U.S. was to release official data on retail sales, as well as a report on business inventories.



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