Forex - Dollar remains down vs. rivals as eyes turn to Federal Reserve

Published 10/20/2010, 08:23 AM
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Investing.com – The U.S. dollar remained lower down against all of the other major currencies on Wednesday, after three regional Federal Reserve presidents reinforced that the central bank will begin a second round of asset purchases.

During European afternoon trade, the greenback was down against the euro, with EUR/USD surging 0.94% to hit 1.3856. Earlier in the day, official data showed that German producer price inflation rose more-than-expected in September.

The greenback was also down against the pound with GBP/USD up 0.04% to hit 1.5712. Official data released earlier Wednesday showed that U.K. public sector borrowing rose more-than-expected in September. 

Elsewhere, the greenback was also down against the yen and the Swiss franc, with USD/JPY shedding 0.39% to hit 81.27 and USD/CHF tumbling 0.81% to hit 0.9639.

Earlier in the day, the Bank of Japan’s deputy governor said that the bank will continue to pursue “strong” monetary policy measures and stands ready to take appropriate monetary action against the rising yen.

The greenback was also down against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.49% to hit 1.0283, AUD/USD jumping 1.10% to hit 0.9793 and NZD/USD surging 0.73% to hit 0.7497.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.67%.

Later in the day, the Federal Reserve was to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.

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