Forex - Dollar mixed vs. rivals as Korea tensions mount

Published 11/24/2010, 05:14 AM
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Investing.com – The U.S. dollar was mixed against its major rivals on Wednesday, after North Korea said that South Korea was driving the peninsula to the “brink of war” sparking a fresh wave of risk aversion.

During European morning trade, the greenback was up against the euro, with EUR/USD shedding 0.46% to hit 1.3304.

Later in the day, Ireland was to unveil a four year austerity plan, as part of a precondition for a bailout by the European Union and the International Monetary Fund.

Earlier Tuesday, data showed that the Ifo index of German business climate rose unexpectedly to a record high in November while separate data showed that industrial new orders in the euro zone fell more-than-expected in September.

Elsewhere, the greenback was down against the pound with GBP/USD rising 0.04% to hit 1.5926. Earlier Tuesday, official data showed that the U.K. economy grew in line with expectations during the third quarter, unchanged from an advanced estimate.

Meanwhile, the greenback was up against the yen but down against the Swiss franc, with USD/JPY rising 0.03% to hit 83.15 and USD/CHF sliding 0.14% to hit 0.9958.

Elsewhere the greenback was down against its Canadian and Australian counterparts but up against its New Zealand cousin, with USD/CAD shedding 0.27% to hit 1.0218, AUD/USD advancing 0.30% to hit 0.9753 and NZD/USD sliding 0.03% to hit 0.7584.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.22%.

Later in the day, the U.S. was to release a slew of data ahead of the Thanksgiving holiday, with a weekly report on initial jobless claims as well as data on personal spending, durable goods orders and new home sales. The country was also to publish revised data on consumer sentiment and inflation expectations.

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