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Forex - Dollar broadly lower as Greece hopes bolster sentiment

Published 06/29/2011, 04:35 AM
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Investing.com – The U.S. dollar was lower against all of its major counterparts on Wednesday, as markets largely priced in expectations that Greece’s parliament would adopt a national austerity package and avert a sovereign debt default.

During European morning trade, the greenback was lower against the euro, with EUR/USD climbing 0.27% to hit 1.4409.

Later in the day, Greece's parliament was due to vote on an unpopular national austerity plan. The plan needed to pass for the indebted nation to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.

The greenback was also lower against the pound, with GBP/USD rising 0.14% to hit 1.6017.

Earlier Wednesday, official data showed that U.K. net lending rose slightly more-than-expected in May, while mortgage approvals rose in line with expectations.

Elsewhere, the greenback slipped against both the yen and the Swiss franc, with USD/JPY sliding 0.08% to hit 81.06 and USD/CHF losing 0.11% to hit 0.8310.

Earlier in the day, official data showed that Japanese industrial production rose at the fastest pace in more than 50 years in May, as automakers resumed operations, following March’s earthquake and tsunami.

In addition, the greenback was down against its Canadian, Australian and New Zealand cousins, with USD/CAD shedding 0.27% to hit 0.9783, AUD/USD climbing 0.55% to hit 1.0598 and NZD/USD jumping 0.97% to hit 0.8200.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26%.

Also Wednesday, the U.S. was to publish industry data on pending home sales.

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