Investing.com - The U.S. dollar remained modestly lower against its major counterparts on Monday, as concerns over the sovereign debt crisis in the euro zone eased somewhat and markets digested news of Philippe Hildebrand’s resignation from his post as chairman of the Swiss National Bank.
During U.S. morning trade, the dollar was lower against the euro, with EUR/USD easing up 0.09% to hit 1.2732.
Earlier in the day, German Chancellor Angela Merkel and French President Nicolas Sarkozy met to discuss proposals to tighten coordination of fiscal policy in the single currency bloc.
Following the talks, Merkel said she was hopeful that leaders could sign off on a fiscal pact aimed at resolving the region’s two-year old debt crisis by the end of January or early February.
Merkel also warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
Sentiment on the single currency had been buoyed earlier, after official data showed that German exports jumped 2.5% in November; unexpectedly increasing the trade surplus and easing concerns over a slowdown in Europe’s largest economy.
But concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs continued to weigh, ahead of government debt auctions by Spain and Italy later in the week.
The greenback was also lower against the Swiss franc, with USD/CHF shedding 0.27% to hit 0.9525, after falling to a session low of 0.9491 earlier, following the SNB announcement.
Hildebrand’s resignation came in the wake of an investigation into a currency trade made by his wife, just weeks before the central bank imposed a minimum exchange rate on the franc against the euro.
Hildebrand said it was "impossible" for him to prove that his wife had initiated the trade and that people would have "to take his word."
In addition, the greenback was lower against the pound and the yen, with GBP/USD rising 0.14% to hit 1.5448 and USD/JPY slipping 0.09% to hit 76.88.
The greenback was down against its counterparts in Canada and New Zealand but inched higher against the Australian dollar, with USD/CAD sliding 0.18% to hit 1.0264, NZD/USD advancing 0.50% to hit 0.7845 and AUD/USD dipping 0.07% to hit 1.0218.
The Australian dollar remained under pressure after official data showed earlier that domestic retail sales were unexpectedly flat in November after a 0.2% rise the previous month, disappointing expectations for a 0.4% gain.
A separate report showed that the number of new building permits issued in Canada declined more-than-expected in November, after surging in the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17% to hit 81.49.
Also Monday, a report showed that investor confidence in the euro zone improved more-than-expected this month, but remained in negative territory for the sixth consecutive month.
During U.S. morning trade, the dollar was lower against the euro, with EUR/USD easing up 0.09% to hit 1.2732.
Earlier in the day, German Chancellor Angela Merkel and French President Nicolas Sarkozy met to discuss proposals to tighten coordination of fiscal policy in the single currency bloc.
Following the talks, Merkel said she was hopeful that leaders could sign off on a fiscal pact aimed at resolving the region’s two-year old debt crisis by the end of January or early February.
Merkel also warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
Sentiment on the single currency had been buoyed earlier, after official data showed that German exports jumped 2.5% in November; unexpectedly increasing the trade surplus and easing concerns over a slowdown in Europe’s largest economy.
But concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs continued to weigh, ahead of government debt auctions by Spain and Italy later in the week.
The greenback was also lower against the Swiss franc, with USD/CHF shedding 0.27% to hit 0.9525, after falling to a session low of 0.9491 earlier, following the SNB announcement.
Hildebrand’s resignation came in the wake of an investigation into a currency trade made by his wife, just weeks before the central bank imposed a minimum exchange rate on the franc against the euro.
Hildebrand said it was "impossible" for him to prove that his wife had initiated the trade and that people would have "to take his word."
In addition, the greenback was lower against the pound and the yen, with GBP/USD rising 0.14% to hit 1.5448 and USD/JPY slipping 0.09% to hit 76.88.
The greenback was down against its counterparts in Canada and New Zealand but inched higher against the Australian dollar, with USD/CAD sliding 0.18% to hit 1.0264, NZD/USD advancing 0.50% to hit 0.7845 and AUD/USD dipping 0.07% to hit 1.0218.
The Australian dollar remained under pressure after official data showed earlier that domestic retail sales were unexpectedly flat in November after a 0.2% rise the previous month, disappointing expectations for a 0.4% gain.
A separate report showed that the number of new building permits issued in Canada declined more-than-expected in November, after surging in the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17% to hit 81.49.
Also Monday, a report showed that investor confidence in the euro zone improved more-than-expected this month, but remained in negative territory for the sixth consecutive month.