Forex - Dollar higher vs. rivals amid Greek debt worries

Published 02/06/2012, 04:44 AM
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Investing.com - The U.S. dollar was higher against its major counterparts on Monday, as worries over Greece’s willingness to accept the conditions required for a second bailout deal weighed on risk sentiment.

During European morning trade, the dollar was higher against the euro, with EUR/USD dropping 0.83% to hit 1.3044.

The single currency came under pressure as Greek political leaders had to decide whether they accept the conditions laid out by the country’s international creditors by 11a.m. local time on Monday, in order to secure a EUR130 billion aid package.

Over the weekend Greek Prime Minister Lucas Papademos said coalition members had agreed on some conditions, but others still needed to be addressed.

Also Monday, a report by Sentix showed that its investor confidence index improved more-than-expected in February, hitting minus 11.1 after a reading at minus 21.1 the previous month.

Analysts had expected a reading of minus 14.8 in February.

The greenback was also higher against the pound, with GBP/USD declining 0.44% to hit 1.5744.

Industry data showed earlier that U.K. house price inflation rose more-than-expected in January, ticking up 0.6% after a 1% decline the previous month. Analysts had expected house price inflation to rise 0.1% in January.

Investors were also eyeing Thursday’s reports on the Bank of England’s asset purchase facility and interest rate statement, amid speculation the central bank may take further monetary easing steps to shore up the country’s economy.

The greenback was up against the yen and the Swiss franc, with USD/JPY adding 0.08% to hit 76.66 and USD/CHF rising 0.77% to hit 0.9251.

In addition, the greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD advancing 0.37% to hit 0.9972, AUD/USD retreating 0.64% higher to hit 1.0701 and NZD/USD declining 0.72% to hit 0.8301.

In Australia, official data showed earlier that retail sales declined unexpectedly in December, ticking down 0.1% after a 0.1% rise the previous month.

Analysts had expected retail sales to rise 0.2% in December.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, climbed 0.71% to hit 79.61.

Later in the day, Germany was to publish official data on factory orders.


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