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Forex - Dollar mixed after Moody’s downgrades Portugal’s debt

Published 04/05/2011, 04:42 AM
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Investing.com – The U.S. dollar was mixed against its major counterparts on Tuesday, as the euro eased off a 5-month high amid expectations that a euro zone rate hike was now priced in by investors and after Moody’s downgraded Portugal’s debt by one notch.

During European morning trade, the greenback was higher against the euro, with EUR/USD shedding 0.29% to hit 1.4178.

Earlier in the day, Moody's Investors Service downgraded Portugal's sovereign debt rating from A3 to Baa1 and warned that it expected the country to have to seek outside help to resolve its debt problems.

But the greenback was lower against the pound, with GBP/USD climbing 0.53% to hit 1.6217.

Earlier Tuesday, data showed that the U.K.’s services PMI unexpectedly jumped to a 13-month high in February.

Elsewhere, the greenback was higher against the yen but lower against the Swiss franc with USD/JPY rising 0.24% to hit 84.26 and USD/CHF slipping 0.09% to hit 0.9222.

Meanwhile, the greenback was higher against its Canadian and Australian counterparts but lower against its New Zealand cousin, with USD/CAD rising 0.16% to hit 0.9685, AUD/USD shedding 0.38% to hit 1.0322 and NZD/USD climbing 0.15% to hit 0.7693.

Earlier in the day, official data showed that Australia’s trade balance unexpectedly swung to a deficit in February for the first time in almost a year. Also Tuesday, Australia’s central bank held its overnight cash rate target at 4.75% for a fourth straight meeting.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.12%.

Later Tuesday, the U.S. was to publish data on service sector growth while the Federal Reserve was to publish the minutes of its most recent policy setting meeting.

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