Forex - Broadly stronger dollar up vs. rivals after Japan sells yen

Published 09/15/2010, 07:26 AM
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Investing.com – The U.S. dollar was up against the other major currencies on Wednesday, after Japan intervened in the currency market for the first time in 6 years, buying dollars in order to curb the yen’s recent sharp gains.

During European afternoon trade, the greenback was up against the euro, with EUR/USD shedding 0.21% to hit 1.2970.

Earlier in the day, official data showed that the annualized rate of consumer price inflation in the euro zone declined in line with expectations in August.

The greenback was also up against the pound, with GBP/USD shedding 0.04% to hit 1.5530.

Earlier Wednesday, official data showed that U.K. jobless claims increased more-than-expected in August, rising for the first time in 7 months.

The U.S. dollar was also down against the yen and Swiss franc, with USD/JPY soaring 2.67% to hit 85.25 and USD/CHF advancing 0.71% to hit 1.0033.

Earlier in the day, Japan’s Finance Minister said that Japan would continue to "closely monitor" foreign exchange movements and pledged further "determined steps, when necessary".

Meanwhile, the greenback was up against its Australian, New Zealand and Canadian counterparts, as AUD/USD shed 0.40% to hit 0.9359, NZD/USD fell 0.41% to hit 0.7313, while USD/CAD gained 0.12% to hit 1.0288.

On Wednesday, the Westpac Banking Group said its index of Australian consumer sentiment fell for the first time in 3 months.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.49%.

Later in the day, the U.S. was to release key data on industrial production and manufacturing activity in New York State.

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