Investing.com - The dollar softened against most major currencies on Wednesday as investors sold the currency for profits as a risk-off rally for the greenback began to weaken.
Weak U.S. third-quarter earnings and European uncertainty sent the greenback gaining earlier.
In Asian trading on Wednesday, EUR/USD was up 0.02% at 1.2988.
Investors rushed to the safety of the dollar after Moody's slapped credit-rating downgrades on the Spanish regions of Andalucia, Extremadura, Castilla-La Mancha, Catalonia and Murcia.
The news pummeled the euro by adding to already growing uncertainty as to if or when Spain will request a bailout, though the currency regained some composure in Asian trading, which sent the dollar falling.
Requesting financial assistance would allow Spain to tap the European Central Bank's bond-buying program, which would lower yields in Spanish government debt auctions and ease credit conditions in the country.
Furthermore, the Bank of Spain said the country’s gross domestic product contracted by 0.4% in the third quarter, leaving the country cemented in recession.
The Spanish monetary authority also stressed that it could not rule out missing deficit targets later this year.
Meanwhile in the U.S., weak third-quarter earnings sent investors chasing the safe-haven greenback before profit-taking kicked in.
U.S. chemical maker DuPont said earlier that third-quarter earnings excluding items came to USD0.44 per share, down 37% from USD0.69 per share during the same period a year earlier.
Revenue dropped to USD7.34 billion from USD8.14 billion, while the company also announced it was cutting 1,500 positions.
Elsewhere, conglomerate 3M earlier reported third-quarter earnings excluding items of USD1.65 per share, up from USD1.52 per share a year earlier.
Revenue fell slightly to USD7.50 billion from USD7.53 billion a year earlier.
Investors, meanwhile, kept an eye on Greece and its negotiations with the troika of creditors.
Greece must agree to USD13.5 billion in spending cuts.
Eurozone policymakers will decide on the country's next tranche of aid Nov. 12.
Meanwhile in the U.S., the Federal Reserve Bank of Richmond reported that its manufacturing index for October fell to -7 versus expectations for a reading of 4, which further stoked the market's risk-off sentiment.
The Federal Reserve will wrap up a two-day monetary policy meeting on Wednesday and investors were not expecting any hints of tightening or changes to otherwise loose policy, which gave the greenback room to ease off its rally.
The dollar was flat against the yen, with USD/JPY trading up 0.01% at 79.86 and down against the Swiss franc, with USD/CHF trading down 0.05% at 0.9319.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.11% at 0.9914, AUD/USD up 0.47% at 1.0314 and NZD/USD trading up 0.23% at 0.8137.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.06% at 79.98.
Markets are eager for the eurozone to release preliminary data on manufacturing and service sector activity later Wednesday.
Germany and France are to release individual reports.
Elsewhere, the Ifo Institute will produce a report on German business climate.
In the U.S., official data will reveal new home sales, a leading indicator of economic health, as well as government data on crude oil inventories.
Also on Wednesday, the Federal Reserve will announce its benchmark interest rate and release its closely watched monetary policy statement.
Weak U.S. third-quarter earnings and European uncertainty sent the greenback gaining earlier.
In Asian trading on Wednesday, EUR/USD was up 0.02% at 1.2988.
Investors rushed to the safety of the dollar after Moody's slapped credit-rating downgrades on the Spanish regions of Andalucia, Extremadura, Castilla-La Mancha, Catalonia and Murcia.
The news pummeled the euro by adding to already growing uncertainty as to if or when Spain will request a bailout, though the currency regained some composure in Asian trading, which sent the dollar falling.
Requesting financial assistance would allow Spain to tap the European Central Bank's bond-buying program, which would lower yields in Spanish government debt auctions and ease credit conditions in the country.
Furthermore, the Bank of Spain said the country’s gross domestic product contracted by 0.4% in the third quarter, leaving the country cemented in recession.
The Spanish monetary authority also stressed that it could not rule out missing deficit targets later this year.
Meanwhile in the U.S., weak third-quarter earnings sent investors chasing the safe-haven greenback before profit-taking kicked in.
U.S. chemical maker DuPont said earlier that third-quarter earnings excluding items came to USD0.44 per share, down 37% from USD0.69 per share during the same period a year earlier.
Revenue dropped to USD7.34 billion from USD8.14 billion, while the company also announced it was cutting 1,500 positions.
Elsewhere, conglomerate 3M earlier reported third-quarter earnings excluding items of USD1.65 per share, up from USD1.52 per share a year earlier.
Revenue fell slightly to USD7.50 billion from USD7.53 billion a year earlier.
Investors, meanwhile, kept an eye on Greece and its negotiations with the troika of creditors.
Greece must agree to USD13.5 billion in spending cuts.
Eurozone policymakers will decide on the country's next tranche of aid Nov. 12.
Meanwhile in the U.S., the Federal Reserve Bank of Richmond reported that its manufacturing index for October fell to -7 versus expectations for a reading of 4, which further stoked the market's risk-off sentiment.
The Federal Reserve will wrap up a two-day monetary policy meeting on Wednesday and investors were not expecting any hints of tightening or changes to otherwise loose policy, which gave the greenback room to ease off its rally.
The dollar was flat against the yen, with USD/JPY trading up 0.01% at 79.86 and down against the Swiss franc, with USD/CHF trading down 0.05% at 0.9319.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.11% at 0.9914, AUD/USD up 0.47% at 1.0314 and NZD/USD trading up 0.23% at 0.8137.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.06% at 79.98.
Markets are eager for the eurozone to release preliminary data on manufacturing and service sector activity later Wednesday.
Germany and France are to release individual reports.
Elsewhere, the Ifo Institute will produce a report on German business climate.
In the U.S., official data will reveal new home sales, a leading indicator of economic health, as well as government data on crude oil inventories.
Also on Wednesday, the Federal Reserve will announce its benchmark interest rate and release its closely watched monetary policy statement.