Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Forex - Dollar broadly lower as Greece approves austerity plan

Published 06/29/2011, 10:43 AM
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com – The U.S. dollar was down against most of its major counterparts on Wednesday, after Greece's parliament approved a five-year austerity plan designed to avert the euro zone’s first sovereign debt default.

During early U.S. trade, the greenback was slightly lower against the euro, with EUR/USD easing up 0.05% to hit 1.4376.

Greece’s parliament voted 155 to 138, with five members abstaining, in favor of ratifying unpopular austerity measures, as violent protests continued outside parliament buildings.

Had the austerity plan been rejected, it could have resulted in the euro zone’s first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.

The greenback was also lower against the pound, with GBP/USD rising 0.14% to hit 1.6021.

The pound remained under pressure amid speculation that the Bank of England could resume its quantitative easing program as some policymakers believed the outlook for growth remains weak.

Elsewhere, the greenback was lower against the yen but higher against the Swiss franc, with USD/JPY shedding 0.36% to hit 80.82 and USD/CHF climbing 0.37% to hit 0.8350.

In Switzerland, a report released earlier showed that the country’s KOF economic barometer fell in line with expectations this month, adding to concerns that the franc’s record gains are weighing on economic growth.

Meanwhile, the greenback was sharply lower against its Canadian, Australian and New Zealand cousins, with USD/CAD tumbling 1.04% to hit 0.9708, AUD/USD surging 0.88% to hit 1.0632 and NZD/USD jumping 0.91% to hit 0.8196.

Earlier in the day, official data showed that Canadian core consumer price inflation rose more-than-expected in May, fanning speculation over a near-term interest rate hike by the country’s central bank.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.28%.

Also Wednesday, a report showed that pending home sales in the U.S. rose significantly more-than-expected in May, with all regions experiencing gains from a year ago.

The National Association of Realtors said its pending home sales index jumped by 8.2% in May, blowing past expectations for a 2.4% gain.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.