Investing.com – The U.S. dollar was broadly lower against its major counterparts on Thursday, after the U.S.’s credit rating was put under review for a downgrade and amid expectations for further monetary stimulus by the Federal Reserve.
During European morning trade, the greenback was weaker against the euro, with EUR/USD climbing 0.51% to hit 1.4235.
On Wednesday, Greece’s credit rating was cut three levels by ratings agency Fitch to CCC, its lowest grade for any country in the world, saying that a default was a “real possibility.”
The greenback was also lower against the pound, with GBP/USD easing up 0.14% to hit 1.6126.
Elsewhere, the greenback eased up against the yen but slipped against the Swiss franc, with USD/JPY edging 0.05% higher to hit 79.04 and USD/CHF shedding 0.36% to hit a record low 0.81499.
The dollar pulled back from a four-month low against the yen earlier after Japan’s finance minister said movements in currency markets have been one sided and did not reflect economic fundamentals, fanning speculation that Japan would intervene to stem the currency’s gains.
Meanwhile, the greenback edged lower against its Canadian and Australian counterparts, with USD/CAD easing down 0.02% to hit 0.9581 and AUD/USD gaining 0.03% to hit 1.0751.
The greenback was also down against the New Zealand dollar, with NZD/USD rallying 0.96% to hit a 26-year high of 0.8455.
Earlier in the day, official data showed that New Zealand’s gross domestic product expanded by 0.8% in the first quarter of 2011, beating expectations for a 0.3% gain and faster than growth of 0.2% in the preceding quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.44% to trade at 75.21.
Late Wednesday, Moody’s Investors Service said that it placed the U.S. government’s Aaa bond rating on review for possible downgrade, citing “a small but rising risk” of a short-lived default, amid a standoff in the U.S. Congress over raising the country's debt ceiling.
Federal Reserve Chairman Ben Bernanke said on Wednesday that the central bank was prepared to provide additional stimulus to bolster the U.S. economy, and warned a failure by Congress to raise the debt limit would send “shock waves” through the financial system.
During European morning trade, the greenback was weaker against the euro, with EUR/USD climbing 0.51% to hit 1.4235.
On Wednesday, Greece’s credit rating was cut three levels by ratings agency Fitch to CCC, its lowest grade for any country in the world, saying that a default was a “real possibility.”
The greenback was also lower against the pound, with GBP/USD easing up 0.14% to hit 1.6126.
Elsewhere, the greenback eased up against the yen but slipped against the Swiss franc, with USD/JPY edging 0.05% higher to hit 79.04 and USD/CHF shedding 0.36% to hit a record low 0.81499.
The dollar pulled back from a four-month low against the yen earlier after Japan’s finance minister said movements in currency markets have been one sided and did not reflect economic fundamentals, fanning speculation that Japan would intervene to stem the currency’s gains.
Meanwhile, the greenback edged lower against its Canadian and Australian counterparts, with USD/CAD easing down 0.02% to hit 0.9581 and AUD/USD gaining 0.03% to hit 1.0751.
The greenback was also down against the New Zealand dollar, with NZD/USD rallying 0.96% to hit a 26-year high of 0.8455.
Earlier in the day, official data showed that New Zealand’s gross domestic product expanded by 0.8% in the first quarter of 2011, beating expectations for a 0.3% gain and faster than growth of 0.2% in the preceding quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.44% to trade at 75.21.
Late Wednesday, Moody’s Investors Service said that it placed the U.S. government’s Aaa bond rating on review for possible downgrade, citing “a small but rising risk” of a short-lived default, amid a standoff in the U.S. Congress over raising the country's debt ceiling.
Federal Reserve Chairman Ben Bernanke said on Wednesday that the central bank was prepared to provide additional stimulus to bolster the U.S. economy, and warned a failure by Congress to raise the debt limit would send “shock waves” through the financial system.