Investing.com - The U.S. dollar gained ground against most of its major counterparts Monday, on steeply higher Portuguese bond yields and renewed Greek debt fears.
During late session U.S. trade, the dollar gained against the euro, with EUR/USD falling 0.73% to hit 1.3123.
The single currency found support after Greece’s private creditors signaled they will accept European government demands for a larger decrease in their debt holdings. It was also signaled that a debt deal is expected within the next several days.
However, Greek Finance Minister Evangelos Venizelos refused to accept a German plan to have a European Union commission evaluate the Greece’s budget policy, triggering additional default worries.
Investors fled to the safety of the greenback when the yield on Portugal’s ten year bonds soared 199 basis points hitting a euro era record of 17.22%. Credit default swaps also climbed to a record in the struggling nation, indicating a 71% chance the government will default.
In other euro negative news, an index of consumer and executive sentiment in the euro zone climbed less than expected to 93.4 from a revised 92.8 in December. Economists were expecting a rise to 93.8.
The first European leader summit of 2012 began in Brussels. Topics of discussion include a German led deficit control treaty, the Greek situation, and the statutes of a EUR500 billion rescue fund to be set up later in the year.
Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than similar auctions, helping to support the euro on this bearish day.
Preliminary German data indicated that consumer price inflation eased by 0.4% in January, broadly in line with expectations for a 0.5% decline.
Meanwhile in the United States, data showed personal spending was flat in December, missing estimates for a 0.2% increase.
The greenback traded higher against the pound, with GBP/USD falling 0.25% to hit 1.5690.
Elsewhere, the greenback was lower against the yen but higher against the Swiss franc with USD/JPY falling 0.54% to 76.28 and USD/CHF gaining 0.64% to hit 0.9184.
The greenback traded higher against its Canadian, Australian and New Zealand counterparts with USD/CAD gaining 0.17% to hit 1.0034, AUD/USD falling 0.60% to 1.0594 and NZD/USD giving back 0.58% to 0.8200.
Fitch Ratings placed Australia’s four largest banks on rating watch negative weighing on the Australian dollar.
However, Fitch made it clear that any Australian bank downgrades would be limited to a single notch.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gained 0.47% to hit 79.31.
During late session U.S. trade, the dollar gained against the euro, with EUR/USD falling 0.73% to hit 1.3123.
The single currency found support after Greece’s private creditors signaled they will accept European government demands for a larger decrease in their debt holdings. It was also signaled that a debt deal is expected within the next several days.
However, Greek Finance Minister Evangelos Venizelos refused to accept a German plan to have a European Union commission evaluate the Greece’s budget policy, triggering additional default worries.
Investors fled to the safety of the greenback when the yield on Portugal’s ten year bonds soared 199 basis points hitting a euro era record of 17.22%. Credit default swaps also climbed to a record in the struggling nation, indicating a 71% chance the government will default.
In other euro negative news, an index of consumer and executive sentiment in the euro zone climbed less than expected to 93.4 from a revised 92.8 in December. Economists were expecting a rise to 93.8.
The first European leader summit of 2012 began in Brussels. Topics of discussion include a German led deficit control treaty, the Greek situation, and the statutes of a EUR500 billion rescue fund to be set up later in the year.
Italy successfully auctioned EUR7.48 billion of long term government debt at lower yields than similar auctions, helping to support the euro on this bearish day.
Preliminary German data indicated that consumer price inflation eased by 0.4% in January, broadly in line with expectations for a 0.5% decline.
Meanwhile in the United States, data showed personal spending was flat in December, missing estimates for a 0.2% increase.
The greenback traded higher against the pound, with GBP/USD falling 0.25% to hit 1.5690.
Elsewhere, the greenback was lower against the yen but higher against the Swiss franc with USD/JPY falling 0.54% to 76.28 and USD/CHF gaining 0.64% to hit 0.9184.
The greenback traded higher against its Canadian, Australian and New Zealand counterparts with USD/CAD gaining 0.17% to hit 1.0034, AUD/USD falling 0.60% to 1.0594 and NZD/USD giving back 0.58% to 0.8200.
Fitch Ratings placed Australia’s four largest banks on rating watch negative weighing on the Australian dollar.
However, Fitch made it clear that any Australian bank downgrades would be limited to a single notch.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gained 0.47% to hit 79.31.