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Forex - Dollar up across the board after S&P cuts Japan’s rating

Published 01/27/2011, 04:44 AM
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Investing.com – The U.S. dollar was up against all of it’s major counterparts on Thursday, after S&P cut Japan's sovereign debt ratings, prompting a sharp rise in the dollar and pushing the euro off a two-month high.

During European morning trade, the greenback was sharply higher against the yen with USD/JPY surging 0.72% to hit 82.75.

 Earlier in the day, S&P lowered its credit rating on Japan to AA- from AA, citing concerns over the country’s high fiscal deficits.

The greenback was also up against the euro, with EUR/USD slipping 0.15% to hit 1.3692.

On Wednesday, the Federal Reserve held interest rates steady at 0.25% and said it would see its USD600 billion bond-purchasing plan through to completion in June.

The greenback was also up against the pound and the Swiss franc with GBP/USD sliding 0.12% to hit 1.5912 and USD/CHF rising 0.32% to hit 0.9452.

Meanwhile, the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.18% to hit 0.9957, AUD/USD tumbling 0.74% to hit 0.9915 and NZD/USD shedding 0.31% to hit 0.77.

Also Thursday, the Reserve Bank of New Zealand kept its benchmark interest rate unchanged at 3.0%, in a widely expected decision.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.1%.

Later in the day, the U.S. was to publish official data on initial jobless claims, as well as reports on durable goods orders and pending home sales.


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