Forex - Dollar broadly weaker after worse-than-expected U.S. data

Published 09/28/2010, 11:41 AM
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Investing.com – The U.S. dollar was down against most of the other major currencies on Tuesday, following the release of broadly worse-than-expected U.S. economic data.

During European afternoon trade, the greenback was down against the euro, with EUR/USD surging 0.87% to hit 1.3571.

Earlier Tuesday, Juergen Stark, executive board member at the European Central Bank confirmed that the institution was on track to continue phasing out some of the special liquidity measures put in place at the height of the financial crisis.

The greenback was also down against the yen and the Swiss franc with USD/JPY shedding 0.52% to hit 83.85 and USD/CHF plummeting 0.99% to hit 0.9757.

But the greenback was up against the pound, with GBP/USD shedding 0.17% to hit 1.5801 after Bank of England policy maker Adam Posen said Britain needed aggressive economic stimulus to stop it falling into the same kind of slump Japan did in the 1990's.

In addition, the greenback was up against its Canadian counterpart with USD/CAD gaining 0.18% to hit 1.0312.

Meanwhile, the greenback was down against its Australian and New Zealand counterparts, with AUD/USD up 0.63% to hit 0.9671 and NZD/USD gaining 0.56% to hit 0.7388.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.68%.

Earlier in the day, the Conference Board said its index of U.S. consumer sentiment fell more-than-expected in September, and separate data showed that while U.S. house prices fell less-than-expected in July, the Richmond Manufacturing Index fell more-than-expected in September.

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