Forex - Dollar down vs. rivals, near 3-month low against yen

Published 01/31/2012, 04:49 AM
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Investing.com - The U.S. dollar was broadly lower against its major counterparts on Tuesday, as hopes for an imminent agreement on a debt swap deal for Greece boosted risk appetite, while the strong yen sparked warnings from Japan over the appreciation of the currency.

During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.41% to hit 1.3196.

The euro was boosted after Greek Prime Minister Lucas Papademos said Monday that "significant progress” had been made in debt-swap talks with the country’s private creditors, boosting hopes that a deal can be finalized before the end of the week.
 
Meanwhile, European Union leaders agreed on a fiscal union pact on Monday and signed off on the details of a EUR500 billion permanent bailout fund for the euro zone.
 
Earlier Tuesday, official data showed that the number of unemployed people in Germany fell more-than-expected in January, while the country’s jobless rate dropped to a record low, easing concerns over the economic outlook for the region’s biggest economy.

The greenback was also lower against the pound, with GBP/USD rising 0.29% to hit 1.5755.

In the U.K., official data showed that net lending to individuals rose by GBP0.4 billion in December, below expectations for GBP1.2 billion increase.

A separate report showed that consumer confidence in the U.K. rose to its highest level in seven months in January.

The greenback was trading close to a three-month low against the yen, with USD/JPY slipping 0.09% to hit 76.27.

Earlier in the day, Japanese Finance Minister Jun Azumi reiterated a warning that he will take "decisive steps" if speculators push the yen up too sharply.

The greenback was also lower against the Swiss franc, with USD/CHF shedding 0.31% to hit 0.9141

In addition, the greenback was down against its Canadian, Australian and New Zealand cousins, with USD/CAD losing 0.27% to hit 0.9987, AUD/USD rising 0.66% to hit 1.0669 and NZD/USD jumping 1.09% to hit 0.8281.

Earlier Tuesday, a report showed that Australian business confidence edged slightly higher in December, indicating that two successive rate cuts by the country’s central bank have supported a recovery in economic sentiment.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.35% to hit 78.95.

Later in the day, the U.S. was to release industry data on house price inflation, as well as a report on manufacturing activity in the Chicago region. The country is also to publish a report on consumer confidence.
 

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