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Forex - Dollar broadly lower vs. rivals as ECB’s Trichet awaited

Published 05/05/2011, 07:56 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Thursday, as investors waited to see if European Central Bank President Jean-Claude Trichet would prepare markets for more rate hikes at a press conference later in the day.

During European afternoon trade, the greenback was slightly lower against the euro, with EUR/USD edging up 0.04% to hit 1.4830.

Earlier Thursday, the ECB left its minimum bid rate unchanged at 1.25%, in line with expectations, after a 0.25% increase last month.

The greenback was also lower against the pound, with GBP/USD inching up 0.07% to hit 1.6499.

Earlier in the day, the Bank of England kept its official cash rate at 0.5%, in a widely expected move amid concerns over the strength of the U.K.’s economic recovery.

In addition, the greenback was down against the yen and the Swiss franc with USD/JPY tumbling 1.10% to hit 79.72 and USD/CHF shedding 0.41% to hit 0.8581.

Elsewhere, the greenback was higher against its Canadian, Australian and New Zealand counterparts with USD/CAD surging 0.70% to hit 0.9660, AUD/USD tumbling 0.76% to hit 1.0664 and NZD/USD shedding 0.48% to hit 0.7858.

Earlier Thursday, official data showed that Australian retail sales unexpectedly dropped in March, fueling speculation the central bank will delay raising interest rates.

A separate report showed that New Zealand’s rate of unemployment fell unexpectedly in the first quarter.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.15%.

Later in the day, the U.S. was to publish official data on initial jobless claims and Federal Reserve Chairman Ben Bernanke was to speak.

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