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Forex - Dollar broadly lower as Trichet comments buoy euro

Published 06/13/2011, 10:48 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts in thin trade on Monday, while the euro was boosted after remarks by European Central Bank President Jean-Claude Trichet.

During early U.S. trade, the greenback was lower against the euro, with EUR/USD rising 0.29% to hit 1.4389.

Earlier in the day, Trichet said oil and commodity prices have boosted inflation and the ECB must stop second-round effects on wages and prices.

The greenback was also down against the pound, with GBP/USD climbing 0.57% to hit 1.6318.

In addition, the greenback was lower against the yen and the Swiss franc, with USD/JPY dipping 0.09% to hit 80.24 and USD/CHF dropping 0.72% to hit 0.8369.

Earlier Monday, Japanese government data showed an unexpected drop in core machinery orders in April, in a sign the March earthquake and tsunami affected companies' ability to spend on equipment and facilities.

Elsewhere, the greenback was down against its Canadian and Australian counterparts, but up against its New Zealand cousin, with USD/CAD shedding 0.27% to hit 0.9769, AUD/USD rising 0.34% to hit 1.0571 and NZD/USD tumbling 0.86% to hit 0.8144.

New Zealand’s dollar fell broadly after a series of severe aftershocks hit the south island city of Christchurch, four months after a devastating earthquake in the city killed 180 people.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.33%.

Later in the day, Richmond Fed President Jeffrey Lacker and Dallas Fed President Richard Fisher were scheduled to speak. Their comments would be closely watched for their views on the U.S. economic recovery.

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