Forex - Dollar broadly lower ahead of critical Fed decision

Published 11/03/2010, 06:05 AM
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Investing.com – The U.S. dollar was broadly lower against the other major currencies on Wednesday, after the Republican Party made strong inroads in U.S. mid-term elections and ahead of a critical Federal Reserve announcement.

During European morning trade, the greenback was down against the euro, with EUR/USD rising 0.08% to hit 1.4045.

The greenback was also down against the pound, with GBP/USD climbing 0.53% to hit 1.6125 after data showed that the CIPS/Markit U.K. services purchasing manager’s index rose unexpectedly in October to hit a 4-month high.

But the greenback was up against the Swiss franc and the yen with USD/CHF easing up 0.04% to hit 0.9799 and USD/JPY gaining 0.20% to hit 80.79. Earlier Wednesday, official data showed that Swiss retail sales rose significantly more-than-expected in September.

Elsewhere, the greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.14% to hit 1.0067, AUD/USD rising 0.03% to hit 0.9993 and NZD/USD gaining 0.31% to hit 0.7739.

Earlier in the day, official data showed that the number of Australian building permits issued in September tumbled unexpectedly to hit their lowest level in six months.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.13%.

Later Wednesday, the U.S. Federal Reserve was to make its November rate statement. The announcement was widely expected to unveil a fresh round of Treasury bond purchases designed to support the U.S. economic recovery.

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