Forex - Dollar firms on robust consumer sentiment data

Published 05/25/2012, 03:30 PM
Updated 05/25/2012, 03:32 PM
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Investing.com - The dollar rose against major world currencies in U.S. trading on Friday as stronger-than-expected consumer sentiment data fueled demand for the greenback, as did concerns the European debt crisis is heating up in Spain.

In U.S. trading on Friday, EUR/USD was trading down 0.16% at 1.2512.

In Spain, the Bankia financial institution is reportedly set to ask the government for EUR15 billion in bailout funding, which sparked fears the European debt crisis is rekindling in Spain.

Meanwhile, calls from Spain's regional Catalonian government for Madrid for help refinance its debts also pushed the euro down to near two-year lows and sent the greenback rising.

Sentiment Greece may exit the eurozone due to widespread anger over austerity measures attached to bailout money continued to send investors worldwide snapping up positions in safe-haven currencies, the dollar namely.

Meanwhile in the U.S. consumer confidence figures surprised on the upside.

The Thomson Reuters/University of Michigan's consumer sentiment index rose to 79.3 in May, topping forecasts for 77.8.
 
The reading was the highest in more than four years.

The greenback was up against the pound, with GBP/USD down 0.15% and trading at 1.5646.

The U.S. currency was up against the yen, with USD/JPY trading up 0.06% at 79.64, and up against the Swiss franc, with USD/CHF trading up 0.16% at 0.9601.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.28% at 1.0297, AUD/USD up 0.01% at 0.9764 and NZD/USD up 0.15% at 0.7546.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.12% at 82.53.







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