Forex - Dollar mixed vs. rivals as U.S. consumer confidence rises

Published 11/30/2010, 10:52 AM
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Investing.com – The U.S. dollar was mixed against its major rivals on Tuesday, as risk aversion remained high over euro zone debt fears and after data showed that U.S. consumer confidence rose to a 5-month high In November.

During European afternoon trade, the greenback was up against the euro, with EUR/USD plunging 0.90% to hit 1.3006.

Earlier in the day, the cost of insuring Italian and Spanish sovereign debt against default rose to hit the highest levels since the launch of the single currency, while yields on Portuguese, Irish and Belgian bonds also widened, reflecting concerns that the deal to bailout Ireland would not contain the euro zone's debt crisis.

The greenback was also up against the pound with GBP/USD dropping 0.10% to hit 1.5554. Earlier in the day, data showed that consumer confidence in the U.K. unexpectedly dropped to a four-month low in November as looming public-spending cuts dented Britons’ outlook for 2011.

But the greenback was down against the yen and the Swiss franc, with USD/JPY tumbling 0.87% to hit 83.51 and USD/CHF shedding 0.16% to hit 0.9984.

Also Tuesday, official data showed that Japan’s industrial production decreased less-than-expected in October, while the unemployment rate rose unexpectedly.

Elsewhere the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD surging 0.85% to hit 1.0265, AUD/USD shedding 0.33% to hit 0.9598 and NZD/USD sliding 0.18% to hit 0.7444.

Earlier in the day, official data showed that Canada’s economy contracted more-than-expected in September, as exports and investments in housing declined.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.48%.

Earlier Tuesday, the Conference Board said its index of U.S. consumer confidence rose more-than-expected in November, hitting its highest level since June. Separate reports showed that while U.S. home prices rose less-than-expected in September, the Chicago PMI rose unexpectedly in November.

Later Tuesday, Federal Reserve Chairman, Ben Bernanke was to speak at a public engagement.

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