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Forex - Dollar mixed as euro zone concerns weigh risk appetite

Published 09/28/2011, 04:39 AM
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Investing.com – The U.S. dollar was mixed against its major counterparts on Wednesday, as uncertainty over plans to enlarge the euro zone’s bailout fund weighed on demand for higher yielding assets.

During European morning trade, the greenback was down against the euro, with EUR/USD rising 0.18% to hit 1.3612.

The single currency was boosted by optimism that Greece is moving closer to receiving its next tranche of financial aid but a lack of consensus about how best to address the region’s debt crisis meant gains were limited.

Germany remains opposed to enlarging the capacity of the EUR440 billion European Financial Facility, while a report in the Financial Times suggested that divisions have emerged between members of the single currency bloc over the terms of Greece’s second bailout package.

But the greenback was slightly higher against the pound, with GBP/USD dipping 0.07% to hit 1.5625.

Sterling was weighed by ongoing speculation that the Bank of England may implement more monetary stimulus before the end of the year to boost the faltering U.K. economy.

Elsewhere, the greenback was lower against the yen but higher against the Swiss franc with USD/JPY shedding 0.49% to hit 76.43 and USD/CHF rising 0.19% to hit 0.8978.

The greenback was also higher against its Canadian, Australian and New Zealand cousins, with USD/CAD advancing 0.58% to hit 1.0251, AUD/USD slipping 0.20% to hit 0.9890 and NZD/USD shedding 0.29% to hit 0.7861.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.07% to hit 78.25.

Later in the day, the U.S. was to publish government data on durable goods orders, while Federal Reserve Chairman Ben Bernanke was scheduled to speak.


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