Forex - Dollar broadly higher vs. riavals on safe haven demand

Published 09/14/2011, 04:47 AM
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Investing.com – The U.S. dollar was broadly higher against its major counterparts on Wednesday, as markets remained pessimistic over signs of progress in resolving the ongoing debt crisis in the euro zone.

During European morning trade, the greenback was up against the euro, with EUR/USD shedding 0.23% to hit 1.3645.

The euro remained under pressure after ratings agency Moody’s downgraded the long term debt rating of two of France’s largest lenders, citing their exposure to Greek debt.

Elsewhere, Greek Prime Minister George Papandreou was to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy later Wednesday, to discuss developments in Greece.

The greenback was also higher against the pound, with GBP/USD slipping 0.18% to hit 1.5754.

Earlier in the day, official data showed that the number of people claiming unemployment benefits in the U.K. rose less-than-expected in August, while the unemployment rate remained unchanged at 7.9%, in line with expectations. The report said the average earnings index rose more-than-expected.

Elsewhere, the greenback dipped against the yen, but eased higher against the Swiss franc, with USD/JPY slipping 0.04% to hit 76.91 and USD/CHF adding 0.18% to hit 0.8819.

Swiss government data released earlier showed that producer price inflation fell more-than-expected in August.

Meanwhile, the greenback was higher against its Canadian, Australian and New Zealand cousins, with USD/CAD climbing 0.64% to hit 0.9918, AUD/USD tumbling 1.13% to hit 1.0194 and NZD/USD shedding 0.65% to hit 0.8173.

The Aussie’s steep losses came after a downward revision of second quarter inflation data.  The Australian Bureau of Statistics said core inflation rose by 0.6% in the second quarter from the first. At the end of July, it reported an increase of 0.9% for the second quarter.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.27% to hit 77.79.

Later in the day, the U.S. was to produce official data on producer price inflation and retail sales.

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