Investing.com - The U.S. dollar was broadly higher against its major counterparts on Monday as market sentiment was dominated by fears over the possibility of a Greek exit from the euro zone, which supported safe haven demand for the greenback.
During European morning trade, the dollar was trading close to a four-month high against the euro, with EUR/USD shedding 0.38% to hit 1.2868.
On Sunday, Alexis Tsipras, the head of Greece’s largest anti-bailout party Syriza, rejected an invitation from the country’s president to attend last-ditch talks aimed at forming a coalition government, fuelling fears that a fresh round of elections is inevitable.
Political leaders have been unable to reach an agreement over whether Greece should continue to pursue unpopular austerity measures demanded by the country’s international creditors in exchange for its EUR130 billion bailout agreement.
The greenback was fractionally higher against the pound, with GBP/USD dipping 0.02% to hit 1.6065.
Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY rising 0.23% to hit 80.11 and USD/CHF climbing 0.39% to hit 0.9334.
In Switzerland, official data showed that producer prices dipped 0.1% in April, declining for the first time in five months and defying expectations for a 0.3% increase.
The greenback was stronger against its Canadian counterpart and rose to multi-month highs against its Australian and New Zealand cousins, with USD/CAD rising 0.37% to hit 1.0042, AUD/USD losing 0.52% to hit 0.9965 and NZD/USD tumbling 0.72% to hit 0.7771.
Sentiment on the growth linked dollars was hit after China’s central bank said it was to cut the reserve requirement ratios for banks, in an attempt to shore-up economic growth.
Also Monday, official data showed that retail sales in New Zealand fell sharply in the first quarter, declining 1.5%, after increasing by 2.2% in the preceding quarter. Analysts had expected retail sales to decline by 0.5% in the three months to March.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.43% to trade at a two-month high of 80.78.
Later Monday, the euro zone was to release official data on industrial production, while Italy and Spain were to hold auctions of government bonds. In addition, European Union finance ministers were to hold talks in Brussels.
During European morning trade, the dollar was trading close to a four-month high against the euro, with EUR/USD shedding 0.38% to hit 1.2868.
On Sunday, Alexis Tsipras, the head of Greece’s largest anti-bailout party Syriza, rejected an invitation from the country’s president to attend last-ditch talks aimed at forming a coalition government, fuelling fears that a fresh round of elections is inevitable.
Political leaders have been unable to reach an agreement over whether Greece should continue to pursue unpopular austerity measures demanded by the country’s international creditors in exchange for its EUR130 billion bailout agreement.
The greenback was fractionally higher against the pound, with GBP/USD dipping 0.02% to hit 1.6065.
Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY rising 0.23% to hit 80.11 and USD/CHF climbing 0.39% to hit 0.9334.
In Switzerland, official data showed that producer prices dipped 0.1% in April, declining for the first time in five months and defying expectations for a 0.3% increase.
The greenback was stronger against its Canadian counterpart and rose to multi-month highs against its Australian and New Zealand cousins, with USD/CAD rising 0.37% to hit 1.0042, AUD/USD losing 0.52% to hit 0.9965 and NZD/USD tumbling 0.72% to hit 0.7771.
Sentiment on the growth linked dollars was hit after China’s central bank said it was to cut the reserve requirement ratios for banks, in an attempt to shore-up economic growth.
Also Monday, official data showed that retail sales in New Zealand fell sharply in the first quarter, declining 1.5%, after increasing by 2.2% in the preceding quarter. Analysts had expected retail sales to decline by 0.5% in the three months to March.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.43% to trade at a two-month high of 80.78.
Later Monday, the euro zone was to release official data on industrial production, while Italy and Spain were to hold auctions of government bonds. In addition, European Union finance ministers were to hold talks in Brussels.