Forex - Dollar down vs. most rivals as weakness remains

Published 09/29/2010, 07:07 AM
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Investing.com – The U.S. dollar was down against most of the other major currencies on Wednesday, but declines were limited as risk appetite faltered.

During European afternoon trade, the greenback was down against the euro, with EUR/USD climbing 0.29% to hit 1.3627.

Earlier Wednesday, borrowing costs in peripheral euro zone nations escalated amid renewed fears over debt downgrades.

Elsewhere, the greenback was also down against the yen with USD/JPY shedding 0.34% to hit 83.58.

Earlier in the day, official data showed that business confidence among Japanese manufacturers improved in September for the sixth consecutive quarter but the 3-month outlook dropped for the first time in seven quarters, amid concerns over the yen's continuing strength.

But the greenback was up against the pound and the Swiss franc, with GBP/USD shedding 0.01% to hit 1.5802 and USD/CHF gaining 0.21% to hit 0.9778.

Earlier in the day, official data showed that British mortgage approvals fell to a 7-month low in August and consumers unexpectedly paid back some of their debts, adding to fears that the U.K. economic recovery is slowing.

Meanwhile, the greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.24% to hit 1.0272, AUD/USD gaining 0.42% to hit 0.9717 and NZD/USD up 0.10% to hit 0.7402.

Earlier Wednesday, official data showed that New Zealand's trade deficit widened significantly more-than-expected in August.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.19%.

On Tuesday, data showed that U.S. consumer confidence fell significantly more-than-expected in September as consumers saw no improvement in the labor market.

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