Forex - Dollar remains broadly higher on E.Z. woes

Published 10/03/2011, 12:03 PM
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Investing.com – The U.S. dollar added to broad gains against its major counterparts on Monday, as ongoing concerns over a potential Greek default added to fears over contagion within the European banking sector.

During U.S. morning trade, the greenback was up against the euro, with EUR/USD falling 0.98% to hit 1.3257.

Concerns over a debt default by Greece mounted after the Greek government said Sunday it will miss its deficit reduction targets this year.

The single currency came under further pressure after euro zone policymaker Jean-Claude Juncker said that no decisions on Greece's next bailout tranche would be made on Monday.

The greenback was also higher against the pound, with GBP/USD down 0.71% to hit 1.5472.

The pound shrugged off a report showing that manufacturing activity in the U.K. rebounded from a 26-month low in September.

Elsewhere, the greenback was lower against the yen but higher against the Swiss franc with USD/JPY shedding 0.45% to hit 76.68 and USD/CHF rising 0.89% to hit 0.9158.

Earlier Monday, official data showed that Swiss retail sales fell unexpectedly in August.

A separate report showed that manufacturing activity in Switzerland fell more-than-expected in September, falling below the 50 level that separates growth from contraction for first time since August 2009, as the strength of the Swiss franc and uncertainty in the global economy weighed.

Meanwhile, the greenback was higher against its Australian counterpart but was lower against its Canadian and New Zealand cousins, with AUD/USD shedding 0.17% to hit 0.9644, USD/CAD slipping 0.47% to hit 1.0448 and NZD/USD rising 0.16% to hit 0.7627.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.44% to hit 79.64.

Also Monday, the U.S. Institute for Supply Management said its index of purchasing managers rose to 51.6 in September from 50.6 the previous month, as production and employment increased.

Analysts had expected the index to ease down to 50.5 in September.

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