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Forex - Dollar dips on euro, yen demand

Published 02/27/2012, 09:25 PM
Updated 02/27/2012, 09:29 PM
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Investing.com - The dollar fell against the world's major currencies Tuesday, buckling under demand for the yen amid a safe-haven run and the euro on news the International Monetary Fund is moving forward towards funding a Greek bailout facility.

Early in Asian trading on Tuesday, the euro was up against the greenback, with EUR/USD gaining 0.10% and trading at 1.3411.

The euro took an earlier hit when G20 nations told European leaders they would need to help themselves a little more in setting up firewall facilities before other countries would contribute to those buffer funds via multilateral financing.

However, the currency firmed after the IMF said it would set aside March 13 to discuss how much it will contribute to a EUR130 billion bailout fund for Greece.

The euro saw further support on reports that money left over from a previous IMF bailout fund for Greece that was never disbursed could wind up in the new bailout fund.

German support for Greece's recovery also firmed the currency.

Meanwhile in Asia, stocks fell amid profit-taking and also on fears that high oil prices will hurt company earnings, which sent investors running to the yen and selling greenbacks in the process.

Meanwhile, the dollar was down against the pound, with Cable up 0.07% trading at 1.5836.

The greenback was down 0.43% against the yen, with USD/JPY trading at 80.26, and down against the Swiss franc, with USD/CHF down 0.07% and trading at 0.8986.

The greenback was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.13% at 0.9977, AUD/USD up 0.04% at 1.0762 and NZD/USD down 0.13% at 0.8399.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17% at 78.50.

Later Tuesday, the U.S. is to produce official data on durable goods orders, a leading indicator of production, followed by industry data on house price inflation and consumer confidence.






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