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Forex - Dollar down vs. most rivals as oil gains weigh

Published 03/07/2011, 08:55 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Monday, as the combination of rising oil prices and the Federal Reserves loose monetary policy weighed on dollar sentiment.

During European afternoon trade, the greenback was lower against the euro, with EUR/USD rising 0.18% to hit 1.4014.

Earlier in the day, rating agency Moody's downgraded Greece's sovereign rating to B1 from Ba1 and assigned it a negative outlook.

But the greenback was fractionally higher against the pound, with GBP/USD dipping 0.07% to hit 1.6254.

Elsewhere, the greenback was down against the yen but was slightly higher versus the Swiss franc, with USD/JPY shedding 0.26% to hit 82.09 and USD/CHF easing up 0.11% to hit 0.9257.

Meanwhile, the greenback was down against its Canadian and Australian counterparts but up against its New Zealand cousin, with USD/CAD shedding 0.26% to hit 0.9707, AUD/USD rising 0.19% to hit 1.0158 and NZD/USD slipping 0.08% to hit 0.7377.

Earlier in the day, official data showed that Canadian building permits fell unexpectedly in January.

Also Monday, New Zealand’s Prime Minister John Key reiterated his support for a cut in the benchmark interest rate after the country’s Treasury said that the February 22 earthquake will reduce economic growth by about 1.5% in 2011.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.12%.

Later Monday, Federal Reserve Bank of Atlanta President Dennis Lockhart was due to speak in Washington, while the president of the Federal Reserve Bank of Chicago, Charles Evans, was also to deliver a speech.

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