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Forex - Dollar mixed vs. rivals as euro debt woes dominate

Published 10/18/2011, 09:08 AM
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Investing.com - The U.S. dollar was mixed against its major counterparts on Tuesday, as safe haven demand was supported by ongoing concerns over the financial crisis in the euro zone.

During European afternoon trade, the greenback was up against the euro, with EUR/USD shedding 0.18% to hit 1.3713.

Concerns over the financial crisis in the euro zone intensified after Moody’s placed France’s triple-A credit rating on review.

Elsewhere, a report earlier showed that an index of German economic sentiment fell to a three-year low this month, adding to fears over a recession in the euro zone’s largest economy. 

The greenback was also up against the pound, with GBP/USD sliding 0.13% to hit 1.5723.

Earlier Tuesday, official data showed that the annualized rate of U.K. inflation rose to 5.2% in September, matching the record high hit in September 2008, fueling concerns that the U.K. economy may experience an extended period of high inflation and low growth.

Meanwhile, the greenback was slightly lower against the yen but was higher against the Swiss franc with USD/JPY slipping 0.09% to hit 76.75 and USD/CHF rising 0.27% to hit 0.9016.

The greenback was lower against its Canadian and Australian counterparts but held gains against its New Zealand cousin, with USD/CAD sliding 0.21% to hit 1.0213, AUD/USD adding 0.14% to hit 1.0771 and NZD/USD losing 0.10% to hit 0.7906.

Earlier in the day, the minutes of the Reserve Bank of Australia’s October meeting showed that policymakers may cut interest rates in the coming months if concerns over the outlook for inflation eased.

Elsewhere, official data showed that China's economy grew by 9.1% in the third quarter, slightly below forecasts for growth of 9.3%, indicating the world's second-largest economy expanded at its slowest pace since the second quarter of 2009.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.04%, to hit 77.56.

Also Tuesday, U.S. data showed that producer price inflation rose significantly more-than-expected in September, rising 0.8% after a flat reading the previous month and above expectations for a 0.2% gain.

Later in the day, Federal Reserve Chairman Ben Bernanke was due to speak at an event in Boston.

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