Forex - Dollar up against rivals as risk aversion escalates

Published 11/23/2010, 04:17 AM
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Investing.com – The U.S. dollar was broadly higher against its major rivals on Tuesday, as risk aversion escalated amid fears over euro zone sovereign debt contagion and following reports of a major artillery exchange on the Korean peninsula.

During European morning trade, the greenback was up against the euro, with EUR/USD dropping 0.22% to hit 1.3595.

Political turmoil in Ireland stoked fears that the crisis which already engulfed Greece would spread to other indebted euro zone nations, such as Spain or Portugal.

The greenback was also up against the pound with GBP/USD shedding 0.19% to hit 1.5926.

Meanwhile, the greenback was up against the yen but down against the Swiss franc, with USD/JPY rising 0.30% to hit 83.58 and USD/CHF slipping 0.08% to hit 0.9886.

Earlier in the day, media outlets in Seoul reported that North Korean artillery fired dozens of shells onto a South Korean island near the disputed sea border, prompting a return of fire by the South.

Elsewhere the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD gaining 0.03% to hit 1.0189, AUD/USD tumbling 0.74% to hit 0.9812 and NZD/USD shedding 0.51% to hit 0.7679.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.31%.

Later Tuesday, the U.S. was to publish revised figures on third quarter GDP as well as data on existing home sales and manufacturing. In addition, the Federal Reserve was to publish the minutes of its November monetary policy meeting.

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