Forex - Dollar down against major rivals as U.S. data eyed

Published 12/14/2010, 07:33 AM
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Investing.com – The U.S. dollar was down against its major counterparts on Tuesday, amid concerns over the U.S. budget gap and ahead of the release of key U.S. economic data and the Federal Reserves December rate statement.

During European afternoon trade, the greenback was down against the euro, with EUR/USD surging 0.65% to hit 1.3477.

Earlier Tuesday, the ZEW Centre for Economic Research said that its index of German economic sentiment rose in December, while separate data showed that industrial production in the euro zone rose less-than-expected in October.

The greenback was also down against the pound with GBP/USD easing up 0.03% to hit 1.5866. Earlier in the day, official data showed that U.K. consumer-price inflation unexpectedly accelerated in November.

Elsewhere, the greenback was down against the yen and the Swiss franc, with USD/JPY shedding 0.48% to hit 82.97 and USD/CHF tumbling 0.72% to hit 0.9606.

Earlier Tuesday, official data showed that Japanese industrial production fell 2.0% in October from September, revised down from a preliminary 1.8% drop, marking the fifth straight monthly decline.

Meanwhile, the greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD sliding 0.15% to hit 1.0055, AUD/USD climbing 0.50% to hit 1.0011 and NZD/USD soaring 0.80% to hit 0.7571.

Earlier Tuesday, official data showed New Zealand’s retail sales fell by the most in 13 years in October.

Elsewhere, data showed that Australian business confidence fell for the third consecutive month in November, while a separate report showed that housing starts tumbled more-than-expected in the third quarter.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.51%.

Later in the day, the U.S. was to release official data on retail sales and producer price inflation. In addition, the Federal Reserve was to announce its federal funds rate.

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