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Forex - Dollar broadly higher vs. rivals after Bullard remarks

Published 03/29/2011, 09:22 AM
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Investing.com – The U.S. dollar was broadly higher against its rivals on Tuesday, after St. Louis Federal Reserve President James Bullard said U.S. policymakers may not wait for global uncertainties to be resolved before they begin normalizing monetary policy.

During European afternoon trade, the greenback was slightly higher against the euro, with EUR/USD sliding 0.17% to hit 1.4061.

Earlier in the day, Bullard said the Federal Reserve's USD600 billion asset purchase program could be trimmed by some USD100 billion and warned that waiting too long to tighten policy may produce "a lot of inflation" in the United States and around the world.

The greenback was also higher against the pound, with GBP/USD slipping 0.12% to hit 1.5971.

Earlier Tuesday, official data showed that while the U.K. economy shrank less-than-expected in the fourth quarter, the new figure was still the biggest decline since the second quarter of 2009.

In addition, the greenback was higher against the yen and the Swiss franc with USD/JPY surging 0.83% to hit 82.38 and USD/CHF climbing 0.55% to hit 0.9217.

Elsewhere, the greenback was lower against its Canadian counterpart but was higher against its Australian and New Zealand cousins, with USD/CAD slipping 0.15% to hit 0.9765, AUD/USD shedding 0.23% to hit 1.0220 and NZD/USD dipping 0.06% to hit 0.7507.

Earlier in the day, government data showed that New Zealand’s trade balance swung to a surplus of NZD194 million in February, from a deficit in January.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.25%.

Also Tuesday, a U.S. report showed that the S&P/Case-Shiller house price index fell for the seventh consecutive month in January.

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