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Forex - Dollar down vs. most rivals as euro rallies ahead of ECB

Published 04/06/2011, 08:07 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Wednesday and the euro rallied to a 14-month high supported by expectations that the European Central Bank will raise interest rates for the first time since 2008 on Thursday.

During European afternoon trade, the greenback was lower against the euro, with EUR/USD rising 0.49% to hit 1.4292.

Earlier Wednesday, official data showed that German manufacturing orders rose significantly more-than-expected in February, boosted by robust domestic and foreign demand.

But the greenback was fractionally higher against the pound, with GBP/USD dipping 0.02% to hit 1.6291.

Earlier in the day, a government report said that manufacturing production in the U.K. was flat in February, while industrial production declined unexpectedly.

Elsewhere, the greenback was higher against the yen but sharply lower against the Swiss franc with USD/JPY rising 0.40% to hit 85.20 and USD/CHF tumbling 1.03% to hit 0.9158.

Earlier Wednesday, government data showed that consumer price inflation in Switzerland rose more-than-expected in March.

In addition, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.48% to hit 0.9589, AUD/USD climbing 0.54% to hit 1.0385 and NZD/USD rallying 0.81% to hit 0.7747.

Earlier in the day, official data showed that Australian home-loan approvals declined for a second month in February as floods and a cyclone disrupted the housing market on the nation’s east coast.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.35%.

On Tuesday, the minutes of the Federal Reserve’s March policy meeting indicated that policymakers believed the U.S. economic recovery was gaining momentum but highlighted the potential negative impact of rapidly rising commodity prices on inflation expectations, consumer spending and business investment.

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