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Forex - Dollar lower vs. most rivals as Bernanke comments awaited

Published 04/27/2011, 07:48 AM
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Investing.com – The U.S. dollar was down against most of its major counterparts on Wednesday, as markets awaited the conclusion of a critical policy setting meeting by the Federal Open Market Committee later in the day.

During European afternoon trade, the greenback was lower against the euro, with EUR/USD rising 0.21% to hit 1.4674.

Official data earlier showed that factory orders in the euro zone rose less-than-expected in February, but the estimate for the previous month's figure was revised upward, indicating that the industrial sector continues to support growth.

The greenback was also lower against the pound, with GBP/USD climbing 0.48% to hit 1.6559 after a government report showing that the U.K. economy expanded in line with expectations in the first quarter.

Elsewhere, the greenback was higher against the yen and the Swiss franc with USD/JPY surging 0.77% to hit 82.18 and USD/CHF edging up 0.16% to hit 0.8765.

Earlier in the day, ratings agency Standard & Poor’s cut its outlook for Japan's sovereign debt rating to negative from stable, warning that reconstruction costs following last month’s earthquake will add to what is already the world’s biggest debt load.

Meanwhile, the greenback edged higher against its Canadian counterpart but was lower against it Australian and New Zealand cousins, with USD/CAD easing up 0.06% to hit 0.9521, AUD/USD gaining 0.33% to hit 1.0818 and NZD/USD rising 0.11% to hit 0.8054.

Earlier Wednesday, a government report showed that that Australian consumer prices increased by the most in five years in the first quarter, boosting expectations for fresh interest rate hikes by the country’s central bank this year.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.11%.

Later Wednesday, the U.S. was to publish official data on durable goods orders, while the Federal Reserve was to announce its federal funds rate. The announcement was to be followed by the first-ever post policy meeting press conference by Fed Chairman Ben Bernanke.

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