Forex - Dollar higher vs. rivals amid lingering E.Z. concerns

Published 09/27/2011, 04:55 AM
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Investing.com – The U.S. dollar was higher against most of its major counterparts on Tuesday, as market sentiment strengthened but comments by Spain's finance minister weighed on the euro.

During European morning trade, the greenback was up against the euro, with EUR/USD sliding 0.16% to hit 1.3512.

The euro dipped after Spain's finance minister Elena Salgado said plans to enlarge the euro zone’s bailout fund to EUR2 trillion were not on the table.

Also Tuesday, a report showed the GfK index of German consumer climate remained unchanged at 5.2 in August. Analysts had expected the index to decline to 5.1 last month.

The greenback was also up against the pound, with GBP/USD slipping 0.10% to hit 1.5548.

Meanwhile, the greenback was higher against the yen and the Swiss franc with USD/JPY inching up 0.09% to hit 76.43 and USD/CHF rising 0.14% to hit 0.9029.

Earlier in the day, a report showed that Switzerland's UBS consumption indicator fell by the most in nine years in August, sliding to 0.79 from a downwardly revised 1.28 the previous month, as the strong Swiss franc weighed on consumer sentiment.

Also Tuesday, Japan's government announced new steps to lessen the impact of the strong yen on the country's economy and said it plans to enact the measures before it completes an extra budget to fund reconstruction spending.

The greenback was up against its Canadian counterpart but was down against the Australian and New Zealand dollars, with USD/CAD climbing 0.14% to hit 1.0266, AUD/USD rising 0.61% to hit 0.9894 and NZD/USD jumping 0.94% to hit 0.7876.

The commodity linked New Zealand and Australian dollars found support as commodity prices rebounded, following steep losses in recent days.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.27% to hit 78.98.

Later in the day, a U.S. report on consumer confidence was to be released, while Federal Open Market Committee member Richard Fisher was also due to speak.

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