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Forex - Dollar mixed vs. rivals as euro under pressure from Portugal

Published 03/29/2011, 05:57 AM
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Investing.com – The U.S. dollar was mixed against its major counterparts on Tuesday, while the euro remained under pressure as yields on Portuguese government debt remained close to record highs.

During European morning trade, the greenback was slightly lower against the euro, with EUR/USD rising 0.16% to hit 1.4108.

On Monday, European Central Bank President Jean-Claude Trichet said inflation in the euro zone was "durably" above the central bank's target, underlining the view that the bank will raise interest rates in April.

The greenback was also slightly lower against the pound, with GBP/USD edging up 0.12% to hit 1.6012.

Earlier in the day, official data showed that while the U.K. economy shrank less-than-expected in the fourth quarter, the new figure was still the biggest decline since the second quarter of 2009.

But the greenback was higher against the yen and the Swiss franc with USD/JPY climbing 0.25% to hit 81.90 and USD/CHF gaining 0.15% to hit 0.9182.

Elsewhere, the greenback was lower against its Canadian and New Zealand counterparts but higher against its Australian cousin, with USD/CAD shedding 0.29% to hit 0.9748, NZD/USD edging up 0.05% to hit 0.7516 and AUD/USD dipping 0.06% to hit 1.0239.

Earlier Tuesday, government data showed that New Zealand’s trade balance swung to a surplus of NZD194 million in February, from a deficit in January.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14%.

Also Tuesday, St. Louis Federal Reserve President James Bullard said U.S. policymakers may not be willing or able to wait for all global uncertainties to be resolved before they begin normalizing loose monetary policy.


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