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Forex - Dollar down vs. rivals as gradual Fed easing disappoints

Published 10/28/2010, 05:05 AM
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Investing.com – The U.S. dollar was down against all of the other major currencies on Thursday, retreating from earlier weekly highs after report in The Wall Street Journal saying that Federal Reserve easing was likely to be gradual disappointed expectations of large scale asset purchases.

During European morning trade, the greenback was down against the euro, with EUR/USD rising 0.46% to hit 1.3829.

The greenback was also down against the pound, with GBP/USD gaining 0.11% to hit 1.5787. Earlier in the day, U.K. mortgage lender Nationwide said that its house price index fell more-than-expected in October.

Elsewhere, the greenback was down against the yen and the Swiss franc, with USD/JPY shedding 0.58% to hit 81.28 and USD/CHF falling 0.56% to hit 0.9849.

Earlier Thursday, the Bank of Japan kept its benchmark interest rate unchanged, in line with expectations. Meanwhile, official data showed that Japanese retail sales rose significantly less-than-expected in September, rising at the slowest pace this year.

The greenback was also up against its Canadian, Australian and New Zealand counterparts, with USD/CAD dropping 0.20% to hit 1.0257, AUD/USD advancing 0.53% to hit 0.9771 and NZD/USD surging 0.69% to hit 0.7502.

Earlier in the day, the Reserve Bank of New Zealand kept its benchmark interest rate unchanged, in line with expectations.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.43%.

Later in the day, the U.S. was to release key weekly data on initial jobless claims.

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