Investing.com - The U.S. dollar turned higher against most of its major counterparts on Thursday, as fears over the crisis in the euro zone intensified, sending investors fleeing to the relative safety of the greenback.
During European afternoon trade, the dollar rose to a fresh four-month high against the euro, with EUR/USD shedding 0.29% to hit 1.2679.
The euro turned lower as shares of Spanish lender Bankia tumbled on the IBEX exchange, amid reports that consumers have withdrawn more than EUR1 billion in funds since the bank was nationalized last week.
In addition, speculation swirled that rating’s agency Moody’s was preparing to announce widespread downgrades on Spain’s banking sector later in the session.
Spain’s Treasury successfully auctioned the full targeted amount of EUR2.5 billion at a government bond sale earlier, but the country’s borrowing costs rose sharply, pressured higher by worries over the health of the country’s banking sector.
Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.
The greenback was also higher against the pound, with GBP/USD down 0.39% to hit a one-month low of 1.5846.
The pound remained broadly weaker after Wednesday’s Bank of England inflation report revised down growth forecasts and warned of the risk to the U.K. economy from the crisis in the euro zone, fuelling speculation over a fresh round of easing measures from the central bank.
Elsewhere, the greenback was lower against the yen, but pushed higher against the Swiss franc, with USD/JPY slipping 0.09% to hit 80.26 and USD/CHF climbing 0.26% to hit 0.9468.
In Japan, official data showed that gross domestic product expanded 1.0% in the three months to March, exceeding expectations for a 0.9% increase, following a flat reading in the previous quarter.
The greenback gained ground against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.17% to hit 1.0137, AUD/USD up just 0.04% to hit 0.9916 and NZD/USD dipping 0.05% to hit 0.7637.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.10%, to trade at 81.37.
Later Thursday, the U.S. was to produce government data on unemployment claims, as well as a report on manufacturing activity in the Philadelphia area.
During European afternoon trade, the dollar rose to a fresh four-month high against the euro, with EUR/USD shedding 0.29% to hit 1.2679.
The euro turned lower as shares of Spanish lender Bankia tumbled on the IBEX exchange, amid reports that consumers have withdrawn more than EUR1 billion in funds since the bank was nationalized last week.
In addition, speculation swirled that rating’s agency Moody’s was preparing to announce widespread downgrades on Spain’s banking sector later in the session.
Spain’s Treasury successfully auctioned the full targeted amount of EUR2.5 billion at a government bond sale earlier, but the country’s borrowing costs rose sharply, pressured higher by worries over the health of the country’s banking sector.
Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.
The greenback was also higher against the pound, with GBP/USD down 0.39% to hit a one-month low of 1.5846.
The pound remained broadly weaker after Wednesday’s Bank of England inflation report revised down growth forecasts and warned of the risk to the U.K. economy from the crisis in the euro zone, fuelling speculation over a fresh round of easing measures from the central bank.
Elsewhere, the greenback was lower against the yen, but pushed higher against the Swiss franc, with USD/JPY slipping 0.09% to hit 80.26 and USD/CHF climbing 0.26% to hit 0.9468.
In Japan, official data showed that gross domestic product expanded 1.0% in the three months to March, exceeding expectations for a 0.9% increase, following a flat reading in the previous quarter.
The greenback gained ground against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.17% to hit 1.0137, AUD/USD up just 0.04% to hit 0.9916 and NZD/USD dipping 0.05% to hit 0.7637.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.10%, to trade at 81.37.
Later Thursday, the U.S. was to produce government data on unemployment claims, as well as a report on manufacturing activity in the Philadelphia area.