Forex - Dollar tumbles vs. rivals as selling pressure escalates

Published 10/14/2010, 05:03 AM
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Investing.com – The U.S. dollar was down against all of the other major currencies on Thursday, as dollar selling pressure escalated after Singapore’s central bank unexpectedly tightened monetary policy.

During European morning trade, the greenback was down against the euro, with EUR/USD surging 0.84% to hit 1.4080.

The greenback was also down against the pound and the Swiss franc, with GBP/USD advancing 0.88% to hit 1.6037 and USD/CHF tumbling 0.80% to hit 0.9505, an all-time low.

The greenback was also down against the yen, with USD/JPY plunging 0.83% to hit 81.12, a 15-year low. Earlier in the day, Japanese Finance Minister Yoshihiko Noda refused to comment on the yen's sharp appreciation. On Tuesday, Minister Noda said his government would take "bold action, which includes intervention, if needed.”

Elsewhere the greenback hit parity against its Canadian cousin, with USD/CAD falling 0.46% to hit 0.9987.

The greenback was also down against its Australian and New Zealand counterparts, with AUD/USD gaining 0.59% to hit 0.9778 and NZD/USD rising 0.13% to hit 0.7615. Earlier in the day, official data showed that New Zealand’s retail sales remained unexpectedly flat in August.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.78%.

Earlier Thursday, the Monetary Authority of Singapore tightened policy, broadening the range of the Singapore dollar's trading band. The move increased pressure on the greenback which has already weakened broadly amid expectations that the Federal Reserve will begin to implement further monetary easing in an effort to stimulate growth.

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