Forex - Dollar rebounds on euro profit taking

Published 01/23/2012, 08:52 PM
Updated 01/23/2012, 08:56 PM
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Investing.com - The dollar rebounded against major currencies in Asian trading Tuesday after traders spent U.S. and European sessions selling the greenback in favor or the euro and other assets like oil.

The dollar rose against the euro, with EUR/USD falling 0.02% and trading at 1.3011.

The euro rose against the dollar earlier on Monday after hopes began building that Greece and its private creditors were close to reaching an agreement on restructuring the country's debts.

Furthermore, Europe's decision to slap a ban on Iranian oil imports staring in July sent global crude prices rising, which sent the dollar falling as well.

Also in Europe on Monday, Germany sold EUR2.54 billion in 12-month Treasury bills at an auction marked by strong investor demand at very low yields, which further bolstered the euro.

However, by Asian trading on Tuesday, demand for the dollar returned as the euro fell amid profit-taking.

Meanwhile, the dollar was stronger against the pound, with Cable falling 0.02% to hit 1.5564.

The greenback was down 0.04% against the yen, with USD/JPY trading at 76.99, and up against the Swiss franc, with USD/CHF rising 0.01% to 0.9278.

The greenback was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD falling 0.04% to 1.0083, AUD/USD flat at 1.0523 and NZD/USD up 0.17% at 0.8114.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.08% at 79.95.

Later Tuesday, the U.S. Federal Open Market Committee begins a two-day meeting to discuss monetary policy and may hint at further loose monetary actions, including quantitative easing.

Investors are awaiting eurozone preliminary manufacturing and service sector data as well as the Bank of Japan's interest rate statement and press conference.    

In Canada, core retail sales figures will hit the wire while Bank of England Governor Mervyn King is due to speak.





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