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Forex - Dollar broadly lower vs. rivals as stimulus fears weigh

Published 08/24/2011, 04:58 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Wednesday, as concerns that the Federal Reserve may announce to fresh steps to boost U.S. growth weighed on demand for the greenback.

During European morning trade, the greenback was down against the euro, with EUR/USD rising 0.18% to hit 1.4465.

The single currency shrugged off data showing that the Ifo Institute's index of German business climate fell more-than-expected this month, falling to 108.7 from 112.9 in July. Economists had forecast a decline to 111.

The greenback was also lower against the pound, with GBP/USD climbing 0.20% to hit 1.6528.

Elsewhere, the greenback was lower against both the yen and the Swiss franc, with USD/JPY slipping 0.18% to hit 76.50 and USD/CHF shedding 0.34% to hit 0.7896.

Earlier in the day, Japan unveiled a two-pronged approach aimed at curbing the appreciation of the yen, creating a new USD100 billion credit line to promote foreign investment and imposing new rules on companies’ foreign exchange holdings.

The initiative disappointed investors as it focused on strategies to cope with persistent yen strength and reduced the risk of further intervention to weaken the yen.

But the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.08% to hit 0.9880, AUD/USD sliding 0.30% to hit 1.0494 and NZD/USD tumbling 0.81% to hit 0.8291.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14% to hit 73.77.

Later in the day, the U.S. was to publish government data on durable goods orders.

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