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Forex - Dollar broadly higher on Greek debt concerns

Published 06/16/2011, 04:39 AM
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Investing.com – The U.S. dollar was broadly higher against its major counterparts on Thursday, as fears over Greece's debt crisis and the possibility of contagion to other euro-zone countries dominated market sentiment.

During European morning trade, the greenback was up against the euro, with EUR/USD shedding 0.21% to hit 1.4148.

The euro weakened broadly after European Central Bank Governing Council member Nout Wellink said earlier that the European bailout fund should be doubled if private investors are to contribute to additional refinancing aid for Greece.

The greenback was also up against the pound, with GBP/USD down 0.39% to hit 1.6132.

Earlier in the day, official data showed that retail sales in the U.K. fell significantly more-than-expected in May.

Meanwhile, the greenback was down against the yen and the Swiss franc with USD/JPY shedding 0.36% to hit 80.66 and USD/CHF slipping 0.22% to hit 0.8507.

Earlier Thursday, the Swiss National Bank left it benchmark interest rate unchanged at 0.25%, in a widely expected decision. Elsewhere, official data showed that Swiss industrial production fell significantly more-than-expected in the first quarter.

Elsewhere, the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.09% to hit 0.9798, AUD/USD shedding 0.26% to hit 1.0548 and NZD/USD dropping 0.47% to hit 0.8027.

New Zealand’s Finance Minister Bill English said earlier Thursday that the local currency’s strength was hurting the economy and keeping interest rates low was better for growth.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.13%.

Later in the day, the U.S. was to publish a weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity.

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