Forex - Dollar reverses losses as equities cool rally

Published 01/10/2012, 10:15 PM
Updated 01/10/2012, 10:18 PM
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Investing.com - The dollar rose against major currencies on Wednesday as demand for the greenback returned while Western equities were set to cool an earlier rally.

The dollar on Wednesday was up against the euro, with EUR/USD dropping 0.32% to hit 1.2737.

The U.S. currency fell prior to the opening of the Asian session on Wednesday as appetite for riskier investments like stocks grew.

Sentiment has grown stronger each day that the U.S. economy will finally gain steam in 2012 while in Europe, news that the Fitch Ratings agency won't strip France of its AAA rating sent investors to stocks, although profit taking appeared poised to set in.

Asian stock markets were up although futures in European and U.S. equities pointed to losses, which sent the dollar regaining its strength.

Meanwhile, the dollar was stronger against the pound, with Cable falling 0.19% to hit 1.5454.

The greenback was up 0.09% against the yen, with USD/JPY was trading at 76.91, and up against the Swiss franc, with USD/CHF gaining 0.29% at 0.9520.

The greenback was up against its cousins in Canada, Australia and New Zealand, with USD/CAD climbing 0.27% at 1.0182, AUD/USD down 0.34% to 1.0278 and NZD/USD down 0.16% at 0.7932.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.26% at 81.36.

Later Wednesday, the U.K. is to release trade balance figures, while eurozone quarterly gross domestic product numbers will be released.

Later in the day, the U.S. is to unveil change to the country's crude oil stockpiles, while the Federal Reserve is to release its Beige Book.

Furthermore, FOMC member Dennis Lockhart is to speak.

Chinese inflation figures are tentatively set to release as well.






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