Investing.com - The U.S. dollar extended gains against most of its major counterparts on Monday, after Italy's borrowing costs surged to record highs at an auction of five-year bills, underscoring concerns over the financial crisis in the euro zone.
During European afternoon trade, the dollar was sharply higher against the euro, with EUR/USD dropping 0.85% to hit 1.3633.
Italy’s Treasury raised the maximum targeted amount of EUR3 billion at the sale, but yields on the five-year bonds rose to a euro-era high of 6.29%, up from 5.32% at a similar auction a month ago.
Meanwhile, official data showed that industrial output in the euro zone fell at the fastest pace in two-and-a-half years in September, adding to fears over an economic downturn in the single currency bloc.
The greenback was also sharply higher against the pound, with GBP/USD tumbling 1.03% to hit 1.5897.
Elsewhere, the greenback was lower against the yen but advanced against the Swiss franc, with USD/JPY slipping 0.16% to hit 77.01, and USD/CHF rising 0.72% to hit 0.9065.
Earlier Monday, government data showed that Swiss producer price inflation declined 0.2% on the month in October, as the stronger Swiss franc and slowing growth in the euro zone weighed on prices.
In Japan, preliminary data showed gross domestic product rose in line with expectations in the third quarter, growing 1.5%, the first gain since the economy was hit by the March 11 earthquake disaster.
The greenback was also higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rallying 0.78% to hit 1.0183, AUD/USD shedding 0.69% to hit 1.0206 and NZD/USD down 0.71% to hit 0.7796.
In New Zealand, official data showed that core retail sales rose far more-than-expected in the third-quarter, jumping 2.4%, while retail sales advanced 2.2%, beating expectations for a 0.6% gain.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.74% to hit 77.67.
Also Monday, German Chancellor Angela Merkel said the debt crisis in the euro zone had brought about the continent’s "toughest hour since World War II".
During European afternoon trade, the dollar was sharply higher against the euro, with EUR/USD dropping 0.85% to hit 1.3633.
Italy’s Treasury raised the maximum targeted amount of EUR3 billion at the sale, but yields on the five-year bonds rose to a euro-era high of 6.29%, up from 5.32% at a similar auction a month ago.
Meanwhile, official data showed that industrial output in the euro zone fell at the fastest pace in two-and-a-half years in September, adding to fears over an economic downturn in the single currency bloc.
The greenback was also sharply higher against the pound, with GBP/USD tumbling 1.03% to hit 1.5897.
Elsewhere, the greenback was lower against the yen but advanced against the Swiss franc, with USD/JPY slipping 0.16% to hit 77.01, and USD/CHF rising 0.72% to hit 0.9065.
Earlier Monday, government data showed that Swiss producer price inflation declined 0.2% on the month in October, as the stronger Swiss franc and slowing growth in the euro zone weighed on prices.
In Japan, preliminary data showed gross domestic product rose in line with expectations in the third quarter, growing 1.5%, the first gain since the economy was hit by the March 11 earthquake disaster.
The greenback was also higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rallying 0.78% to hit 1.0183, AUD/USD shedding 0.69% to hit 1.0206 and NZD/USD down 0.71% to hit 0.7796.
In New Zealand, official data showed that core retail sales rose far more-than-expected in the third-quarter, jumping 2.4%, while retail sales advanced 2.2%, beating expectations for a 0.6% gain.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.74% to hit 77.67.
Also Monday, German Chancellor Angela Merkel said the debt crisis in the euro zone had brought about the continent’s "toughest hour since World War II".