Investing.com - The U.S. dollar rose against most major currencies on Wednesday after the International Monetary Fund trimmed its 2013 growth forecast and sent investors avoiding risk-on asset classes and seeking safety in the greenback.
Dovish comments from an ECB official and disappointing U.K. jobs data also fueled safe-haven dollar demand,
In U.S. trading on Wednesday, EUR/USD was down 1.11% at 1.3030.
ECB Governing Council member Jens Weidmann told the Wall Street Journal that monetary authorities could cut interest rates if economic and inflation data indicated that policy loosening may be warranted, though he added that monetary policy is already quite expansionary.
The dollar also rose after the International Monetary Fund urged central banks around the world to keep an eye on monetary stimulus programs in place to better prevent asset bubbles from swelling in local markets,.
While stimulus programs carried out by the Federal Reserve and the Bank of Japan should continue to support growth in the U.S. and Japan, the eurozone still posed the greatest threat to a recovery in the global economy, the IMF added.
The IMF also trimmed its 2013 world economic growth forecast to 3.3%, down from a January projection of 3.5%, while the multilateral lending institution's 2014 growth forecast fell to 4.0% from 4.1%.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.79% at 1.5240.
Official data showed the U.K. unemployment rate unexpectedly rose to 7.9% in March from 7.8% in February.
Analysts were expecting the unemployment rate to remain unchanged.
Average U.K. earnings rose by 0.8% year-on-year in the three months to February, below expectations for a 1.2% increase.
The number of people seeking unemployment benefits fell by 7,000 in March compared to expectations for an increase of 500.
Meanwhile, the minutes of the Bank of England’s April meeting showed that policymakers remained divided over the need for further easing.
The dollar was up against the yen, with USD/JPY up 0.53% at 98.06, and up against the Swiss franc, with USD/CHF trading up 1.11% at 0.9328.
The dollar was up against its counterparts in Canada, Australia and New Zealand, with USD/CAD down 0.51% at 1.0265, AUD/USD down 0.95% at 1.0293 and NZD/USD trading down 0.70% at 0.8436.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 1.06% at 82.75.
On Thursday, the U.S. is to release a weekly government report on initial jobless claims as well as data on manufacturing activity in Philadelphia.
Dovish comments from an ECB official and disappointing U.K. jobs data also fueled safe-haven dollar demand,
In U.S. trading on Wednesday, EUR/USD was down 1.11% at 1.3030.
ECB Governing Council member Jens Weidmann told the Wall Street Journal that monetary authorities could cut interest rates if economic and inflation data indicated that policy loosening may be warranted, though he added that monetary policy is already quite expansionary.
The dollar also rose after the International Monetary Fund urged central banks around the world to keep an eye on monetary stimulus programs in place to better prevent asset bubbles from swelling in local markets,.
While stimulus programs carried out by the Federal Reserve and the Bank of Japan should continue to support growth in the U.S. and Japan, the eurozone still posed the greatest threat to a recovery in the global economy, the IMF added.
The IMF also trimmed its 2013 world economic growth forecast to 3.3%, down from a January projection of 3.5%, while the multilateral lending institution's 2014 growth forecast fell to 4.0% from 4.1%.
The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.79% at 1.5240.
Official data showed the U.K. unemployment rate unexpectedly rose to 7.9% in March from 7.8% in February.
Analysts were expecting the unemployment rate to remain unchanged.
Average U.K. earnings rose by 0.8% year-on-year in the three months to February, below expectations for a 1.2% increase.
The number of people seeking unemployment benefits fell by 7,000 in March compared to expectations for an increase of 500.
Meanwhile, the minutes of the Bank of England’s April meeting showed that policymakers remained divided over the need for further easing.
The dollar was up against the yen, with USD/JPY up 0.53% at 98.06, and up against the Swiss franc, with USD/CHF trading up 1.11% at 0.9328.
The dollar was up against its counterparts in Canada, Australia and New Zealand, with USD/CAD down 0.51% at 1.0265, AUD/USD down 0.95% at 1.0293 and NZD/USD trading down 0.70% at 0.8436.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 1.06% at 82.75.
On Thursday, the U.S. is to release a weekly government report on initial jobless claims as well as data on manufacturing activity in Philadelphia.