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Forex - Dollar falls on monetary uncertainty, awaits key data

Published 06/12/2013, 02:18 PM
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Investing.com - The dollar fell against most major currencies on Wednesday amid uncertainty over when the Federal Reserve will begin scaling back stimulus programs such as its USD85 billion monthly bond-buying program, which weaken the currency to spur recovery.

The Bank of Japan left monetary policy unchanged earlier this week, a move that came as a surprise to many that roiled markets by clouding outlooks possible Federal Reserve plans to follow suit.

In U.S. trading on Wednesday, EUR/USD was up 0.14% at 1.3333.

Though lower overall, the dollar enjoyed some support albeit in a choppy fashion from investors seeking safe-harbor amid uncertainty over when the Federal Reserve will begin scaling back monetary stimulus measures.

The U.S. will release weekly data on initial jobless claims on Thursday as well as official data on retail sales, which investors were hoping will provide a more readable weather vane for the markets.

Elsewhere, the single currency enjoyed support after official data revealed that the eurozone's industrial production index for the third consecutive month in April.

Eurostat said industrial production rose by a 0.4% in April from March, defying expectations for a 0.2% decline.

Year-on-year industrial production contracted by 0.6%, better than market calls for a 1.2% contraction.

The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.22% at 1.5680.

In the U.K. earlier, official data revealed that the number of people claiming unemployment benefits fell to its lowest level in two years in May.

The Office for National Statistics said that the claimant count in the U.K. fell by 8,600 in May, better than expectations for a decline of 5,000 people.

The unemployment rate remained steady at 7.8% in April, in line with expectations.

The numbers sent the pound gaining.

The dollar was down against the yen, with USD/JPY down 0.34% at 95.70, and down against the Swiss franc, with USD/CHF trading down 0.36% at 0.9214.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.13% at 1.0204, AUD/USD up 0.80% at 0.9500 and NZD/USD trading up 1.38% at 0.7980.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% at 81.13.










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