Forex - Dollar broadly higher vs. rivals after U.S. data

Published 12/15/2010, 11:00 AM
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Investing.com – The U.S. dollar was broadly higher its major counterparts on Wednesday, after the release of U.S. data on consumer price inflation, industrial production and manufacturing.

During European late afternoon trade, the greenback was up against the euro, with EUR/USD shedding 0.32% to hit 1.3333.

Earlier Wednesday, the premium that investors demand to hold Spanish government debt rose after ratings agency Moody’s put Spain's Aa1 sovereign credit rating under review, pending a possible downgrade.

The greenback was also up against the pound with GBP/USD tumbling 0.91% to hit 1.5630. Earlier, official data showed that the number of people claiming unemployment benefits in the U.K. fell less-than-expected in November, while the unemployment rate rose unexpectedly in the third quarter.

Elsewhere, the greenback was up against the yen and the Swiss franc, with USD/JPY rising 0.37% to hit 83.97 and USD/CHF climbing 0.19% to hit 0.9614.

Earlier Wednesday, the Bank of Japan said its Tankan manufacturing index fell for the first time since March 2009, declining to 5.0 points in the fourth quarter, after rising to 8.0 points in the preceding quarter.

Meanwhile, the greenback was down against its Canadian counterpart but up against its Australian and New Zealand cousins, with USD/CAD shedding 0.32% to hit 1.0029, AUD/USD falling 0.65% to hit 0.9923 and NZD/USD tumbling 0.93% to hit 0.7445.

Earlier in the day, a report by Westpac Bank and the Melbourne Institute showed that though Australian consumer sentiment rose 0.2% in December from the previous month, the figure was down 2.4% year-on-year.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.30%.

Earlier Wednesday, official data showed that U.S. core consumer prices, which exclude food and energy costs, rose in line with expectations in November.

Meanwhile, separate reports showed that U.S. industrial production rose slightly more-than-expected in November while the New York Federal Reserve’s index of manufacturing conditions rose significantly more-than-expected in December.

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