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Forex - Dollar broadly lower after Japan raises level of nuclear crisis

Published 04/12/2011, 08:13 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Tuesday, as safe haven inflows boosted the yen and Swiss franc after Japan raised its assessment of the crisis at the Fukushima Daiichi nuclear plant to the same level as the 1986 Chernobyl disaster.

During European afternoon trade, the greenback was lower against the euro, with EUR/USD climbing 0.21% to hit 1.4468.

Earlier in the day, the ZEW Center for European Economic Research said its German investor-expectations index recorded a sharper-than-expected decline in April.

But the greenback was higher against the pound, with GBP/USD shedding 0.31% to hit 1.6293.

Earlier Tuesday, a government report said U.K. consumer price inflation rose by 4.0% last month, its lowest annual rate of increase since January and the first fall in the CPI rate since July last year.

Elsewhere, the greenback was down against the yen and the Swiss franc with USD/JPY shedding 0.51% to hit 84.15 and USD/CHF tumbling 0.76% to hit 0.8996.

Japan's Nuclear and Industrial Safety Agency said earlier Tuesday that based on cumulative levels of radiation released, the severity of the incident at the Fukushima Daiichi power plant had been raised to seven, the worst on an internationally recognized scale.

Elsewhere, the greenback was higher against its Canadian and Australian counterparts but lower against its New Zealand cousin, with USD/CAD rising 0.18% to hit 0.9582, AUD/USD dipping 0.05% to hit 1.0489 and NZD/USD surging 0.77% to hit 0.7858.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.21%.

Later Tuesday, the U.S. was to release government data on its trade balance and the federal budget balance.


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