Investing.com - The U.S. dollar was broadly lower against its major counterparts on Monday, as market sentiment strengthened after a weekend opinion poll in Greece showed growing support for pro-bailout parties ahead of next months general election.
During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.48% to hit 1.2576.
Investor concerns over a disorderly Greek exit from the euro exit eased after an opinion poll indicated that the conservative New Democracy party may be able to form a government following the June 17 elections, after elections in early May resulted in a political deadlock.
But market participants remained wary as concerns over the health of Spain’s banking sector persisted after the government announced Sunday that it was to recapitalize one of the country’s largest commercial lenders, Bankia.
The announcement sparked fresh fears that the rising cost of bank rescues could force Spain into seeking an international bailout.
The greenback dipped lower against the pound, with GBP/USD inching up 0.07% to hit 1.5677.
Elsewhere, the greenback was weaker against the yen and the Swiss franc, with USD/JPY shedding 0.38% to hit 79.37 and USD/CHF losing 0.31% to hit 0.9566.
Earlier Monday, the minutes of the Bank of Japan’s April 27 meeting said that policymakers agreed to ease monetary policy in order to ensure the continued economic recovery, but said that the central bank needs to counter the “misunderstanding” in markets that easing will automatically continue until the bank’s 1% inflation target is met.
The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD losing 0.45% to hit 1.0247, AUD/USD jumping 1.00% to hit 0.9855 and NZD/USD rallying 1.05% to hit 0.7617.
In Australia, central bank Governor Glenn Stevens said that in addition to the debt crisis in the euro zone, China’s slowing growth poses a threat to the Australian economy and must be closely monitored.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.48%, to trade at 82.12.
Trade looked likely to remain quiet on Monday, with some markets in Europe closed for holidays, while markets in the U.S. were to remain closed for the Memorial Day holiday.
During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.48% to hit 1.2576.
Investor concerns over a disorderly Greek exit from the euro exit eased after an opinion poll indicated that the conservative New Democracy party may be able to form a government following the June 17 elections, after elections in early May resulted in a political deadlock.
But market participants remained wary as concerns over the health of Spain’s banking sector persisted after the government announced Sunday that it was to recapitalize one of the country’s largest commercial lenders, Bankia.
The announcement sparked fresh fears that the rising cost of bank rescues could force Spain into seeking an international bailout.
The greenback dipped lower against the pound, with GBP/USD inching up 0.07% to hit 1.5677.
Elsewhere, the greenback was weaker against the yen and the Swiss franc, with USD/JPY shedding 0.38% to hit 79.37 and USD/CHF losing 0.31% to hit 0.9566.
Earlier Monday, the minutes of the Bank of Japan’s April 27 meeting said that policymakers agreed to ease monetary policy in order to ensure the continued economic recovery, but said that the central bank needs to counter the “misunderstanding” in markets that easing will automatically continue until the bank’s 1% inflation target is met.
The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD losing 0.45% to hit 1.0247, AUD/USD jumping 1.00% to hit 0.9855 and NZD/USD rallying 1.05% to hit 0.7617.
In Australia, central bank Governor Glenn Stevens said that in addition to the debt crisis in the euro zone, China’s slowing growth poses a threat to the Australian economy and must be closely monitored.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.48%, to trade at 82.12.
Trade looked likely to remain quiet on Monday, with some markets in Europe closed for holidays, while markets in the U.S. were to remain closed for the Memorial Day holiday.