Forex - Dollar gains on brewing Spain worries

Published 03/25/2012, 09:58 PM
Updated 03/25/2012, 10:00 PM
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Investing.com - The dollar rose against the world's major currencies on Monday, reversing a weakening trend after fears grew that a lull in the European debt crisis was fading when Italian Prime Minister Mario Monti said contagion from Spain could reignite the crisis.

In Asian trading on Monday, the euro was down against the greenback, with EUR/USD slipping 0.03% and trading at 1.3267.

The euro was up against many major currencies earlier on sentiment that recently approved bailout money for Greece gave the continent time to firewall its debt crisis.

European finance ministers will meet on March 30 to discuss containment plans, although concerns were brewing that Spain needed to do more to strengthen its finances, Monti said.

The European currency did find support on sentiment that German business confidence figures will meet expectations later Monday.

The dollar took a dip in recent sessions on reports that the U.S. housing market still faces headwinds.

On Friday, the Commerce Department reported that new single-family home sales disappointed in February, while the National Association of Realtors reported a similar trend when it came to total existing-home sales.

However, the dollar regained its footing early in the session on Monday.

The greenback was lower against the pound, with GBP/USD up 0.02% and trading at 1.5873.

The greenback was up against the yen, with USD/JPY trading up 0.46% at 82.72, and up against the Swiss franc, with USD/CHF up 0.04% and trading at 0.9084.

The greenback was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.01% at 0.9980, AUD/USD down 0.14% at 1.0453 and NZD/USD down 0.20% at 0.8166.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.08% at 79.58.

Later Monday, pending home sales in the U.S. will release, while Federal Reserve Chairman Ben Bernanke is due to speak.






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