Forex - Dollar declines across the board on Fed easing uncertainty

Published 10/28/2010, 12:07 PM
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Investing.com – The U.S. dollar was down against all of the other major currencies on Thursday, as continued speculation over the scale and possible impact of further monetary easing by the Federal Reserve weighed on sentiment towards the currency.

During European late afternoon trade, the greenback was down against the euro, with EUR/USD jumping 1.11% to hit 1.3922. Earlier Thursday, data showed that the euro zone CB economic-sentiment index rose to a 34-month high of 104.1 in October, up from 103.2 in September.

The greenback was also down against the pound, with GBP/USD soaring 1.05% to hit 1.5933. Earlier in the day, industry data showed that U.K. retail sales fell more-than-expected in October. Separately, U.K. mortgage lender Nationwide said that its house price index fell more-than-expected in October.

Elsewhere, the greenback was down against the yen and the Swiss franc, with USD/JPY tumbling 0.94% to hit 80.99 and USD/CHF falling 0.71% to hit 0.9832.

Earlier Thursday, the Bank of Japan kept its benchmark interest rate unchanged, in line with expectations. Meanwhile, official data showed that Japanese retail sales rose significantly less-than-expected in September, rising at the slowest pace this year.

The greenback was also up against its Canadian, Australian and New Zealand counterparts, with USD/CAD falling 0.75% to hit 1.0201, AUD/USD advancing 0.61% to hit 0.9779 and NZD/USD surging 1.14% to hit 0.7535.

Earlier in the day, the Reserve Bank of New Zealand kept its benchmark interest rate unchanged, in line with expectations but indicated that removal of monetary policy support will be required in the near future.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, plummeted 1.18%.

Earlier in the day, official data showed that the number of people who filed for unemployment assistance in the U.S. last week fell unexpectedly to the lowest level since July.

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