Dollar steady to higher amid sustained E.Z. worries

Published 10/08/2012, 05:33 AM
Updated 10/08/2012, 05:34 AM
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Investing.com - The U.S. dollar was steady to higher against its major counterparts on Monday, as concerns over the handling of the debt crisis in the euro zone dampened demand for riskier assets, although Friday's upbeat U.S. employment data continued to support.

During European morning trade, the dollar was higher against the euro, with EUR/USD dropping 0.51% to 1.2968.

The euro came under pressure ahead of a highly anticipated meeting of European Union finance ministers in Luxemburg, later in the day to discuss Spain's debt woes and closer banking cooperation.

Investors were also eyeing German Chancelor Angela Merkel's first trip to Greece since July 2007 on Tuesday.

Merkel's visit coincides with deliberations among Greece’s troika of international creditors - the ECB, the European Commission and the International Monetary Fund - on whether the country will receive its next installment of aid.

Also Monday, data showed that the Sentix index of investor confidence in the euro zone for October ticked up to minus 22 from a reading of minus 23.2 the previous month.

Analysts had expected the index to improve to minus 20.8.

The greenback was also higher against the pound, with GBP/USD declining 0.35% to 1.6075.

Elsewhere, the greenback was lower against the yen, with USD/JPY retreating 0.56% to hit 78.22, but higher against the Swiss franc, with USD/CHF climbing 0.48% to trade at 0.9338.

Earlier in the day, official data showed that consumer price inflation in Switzerland rose by 0.3% in September, in line with expectations, after a flat reading the previous month.

In addition, the greenback was steady against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching 0.06% lower to 0.9782, AUD/USD dipping 0.03% to 1.0180 and NZD/USD inching down 0.05% to hit 0.8172.

Industry data earlier showed that job advertisements in Australia fell by 2.8% in September, after a 2.4% decline the previous month.

Separately, a report showed that house prices in New Zealand rose 0.6% last month after a a 1.3% increase in August.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.30%, to trade at 79.66.

Trading volumes were expected to be light on Monday, as markets in Japan, Canada and the U.S. were to remain closed for national holidays.


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