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Forex - Dollar falls as Greece votes for austerity

Published 02/12/2012, 09:30 PM
Updated 02/12/2012, 09:36 PM
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Investing.com - The greenback slid against most of the world's major currencies on Monday after Greece's parliament voted to accept tough austerity measures such as pension cuts and public-sector layoffs in exchange for access to bailout money arranged by multilateral institutions.

In early Asian trading on Monday, EUR/USD rose 0.27% to 1.3234.

Greek lawmakers voted in favor of accepting austerity measures to tap EUR130 billion in assistance funding arranged by the European Union, the European Central Bank and the International Monetary Fund to avoid going bankrupt.

The news sent investors rushing to sell dollars in exchange for other assets worldwide, stocks especially, since it appeared increasingly likely during the trading session that Greece would make a EUR14.5 billion bond payment due March 20.
 
Japan's economy, meanwhile, contracted in the fourth quarter by 0.6% on year, much more than an expected contraction of around 0.3%, which sent the yen slipping against the greenback although in choppy trade.

Meanwhile, the dollar was down against the pound, with Cable rising 0.17% to hit 1.5782.

The greenback was up 0.03% against the yen, with USD/JPY trading at 77.63, and down against the Swiss franc, with USD/CHF losing 0.27% to 0.9140.

The greenback was down against its counterparts in Canada, Australia and New Zealand, with USD/CAD down 0.12% at 1.0001, AUD/USD up 0.43% at 1.0718 and NZD/USD up 0.55% at 0.8312.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.22% at 78.94.

On Monday in the U.K., the Royal Institution of Chartered Surveyors' House Price Balance will hit the wire.

Australia is to publish business confidence figures.

Also Monday, Switzerland is to release official data on producer price inflation, an important gauge of consumer inflation.






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