Investing.com - The dollar fell against the world's major currencies Wednesday as improving consumer confidence ratings in the U.S. coupled with lower global oil prices enticed investors out of the safety of the greenback and into riskier assets like stocks.
In early Asian trading on Wednesday, the euro was up against the greenback, with EUR/USD gaining 0.15% and trading at 1.3478.
In the U.S., the Conference Board reported its consumer confidence index jumped to a 12-month high in February, rising to 70.8 from 61.5 in January and far outpacing expectations for a gain to 63.0.
The news surprised markets, prompting investors to overlook disappointing indicators.
The Commerce Department, for example, said U.S. orders for durable manufactured goods fell by the most in three years in January.
Durable goods orders dropped 4.0% in January, far worse than forecasts for a 0.8% decline, while core durable goods orders, which are stripped of transportation items, fell 3.2% in January.
U.S. home prices fell more-than-expected in December, according to the Standard & Poor's Case-Shiller home-price index.
In the end, however, lower oil prices coupled with rising consumer confidence figures sent stocks rising worldwide and the dollar cooling.
In Europe, meanwhile, the European Central Bank is set to roll out its second long-term refinancing operation, where it will make affordable credit available to financial institutions, possibly up to EUR500 billion in three-year loans.
The policy aims to pump money into the financial system and lower yields in government bond auctions, and anticipation of its arrival later Wednesday sent the euro rising against the dollar.
Asian stocks followed their U.S. counterparts, which kept the dollar low as well, although the greenback was up against the yen.
Japan has said it will take measures to weaken its currency.
Meanwhile, the dollar was down against the pound, with Cable up 0.11% and trading at 1.5920.
The greenback was up 0.21% against the yen, with USD/JPY trading at 80.63, and down against the Swiss franc, with USD/CHF down 0.13% and trading at 0.8944.
The greenback was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.19% at 0.9936, AUD/USD up 0.43% at 1.0813 and NZD/USD up 0.58% at 0.8426.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.04% at 78.20.
Later Wednesday, the U.S. is to release a preliminary report on fourth-quarter GDP, the broadest measure of economic activity and the primary gauge of the economy’s health. The country is also to report on manufacturing activity in the Chicago area.
Also Wednesday, Federal Reserve Chairman Ben Bernanke is due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.
In early Asian trading on Wednesday, the euro was up against the greenback, with EUR/USD gaining 0.15% and trading at 1.3478.
In the U.S., the Conference Board reported its consumer confidence index jumped to a 12-month high in February, rising to 70.8 from 61.5 in January and far outpacing expectations for a gain to 63.0.
The news surprised markets, prompting investors to overlook disappointing indicators.
The Commerce Department, for example, said U.S. orders for durable manufactured goods fell by the most in three years in January.
Durable goods orders dropped 4.0% in January, far worse than forecasts for a 0.8% decline, while core durable goods orders, which are stripped of transportation items, fell 3.2% in January.
U.S. home prices fell more-than-expected in December, according to the Standard & Poor's Case-Shiller home-price index.
In the end, however, lower oil prices coupled with rising consumer confidence figures sent stocks rising worldwide and the dollar cooling.
In Europe, meanwhile, the European Central Bank is set to roll out its second long-term refinancing operation, where it will make affordable credit available to financial institutions, possibly up to EUR500 billion in three-year loans.
The policy aims to pump money into the financial system and lower yields in government bond auctions, and anticipation of its arrival later Wednesday sent the euro rising against the dollar.
Asian stocks followed their U.S. counterparts, which kept the dollar low as well, although the greenback was up against the yen.
Japan has said it will take measures to weaken its currency.
Meanwhile, the dollar was down against the pound, with Cable up 0.11% and trading at 1.5920.
The greenback was up 0.21% against the yen, with USD/JPY trading at 80.63, and down against the Swiss franc, with USD/CHF down 0.13% and trading at 0.8944.
The greenback was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.19% at 0.9936, AUD/USD up 0.43% at 1.0813 and NZD/USD up 0.58% at 0.8426.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.04% at 78.20.
Later Wednesday, the U.S. is to release a preliminary report on fourth-quarter GDP, the broadest measure of economic activity and the primary gauge of the economy’s health. The country is also to report on manufacturing activity in the Chicago area.
Also Wednesday, Federal Reserve Chairman Ben Bernanke is due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.