Forex - Dollar up vs. most rivals amid optimism over U.S. recovery

Published 03/28/2011, 05:34 AM
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Investing.com – The U.S. dollar was up against most of its major counterparts on Monday, amid speculation the U.S. economic recovery was gathering pace, while markets continued to monitor ongoing unrest in the Middle East and Japan’s nuclear crisis.

During European morning trade, the greenback was up against the euro, with EUR/USD dipping 0.22% to hit 1.4054.

German Chancellor Angela Merkel's conservative party suffered a loss in elections in the key state of Baden-Wuerttemberg over the weekend, which could limit Merkel's ability to pass legislation as her coalition government deals with nuclear power, military action in Libya and the ongoing euro zone debt crisis.

The greenback was also up against the pound with GBP/USD dropping 0.61% to hit 1.5946.

Meanwhile, the U.S. dollar climbed to six-day high against the yen, with USD/JPY gaining 0.55% to hit 81.79.

However, the greenback was lower against the safe-haven Swiss franc, with USD/CHF shedding 0.25% to hit 0.9177.

Elsewhere, the greenback was down against its Australian counterpart, with AUD/USD jumping 0.25% to hit 1.0286. It earlier rose to a fresh record high of 1.0314.

Meanwhile, the U.S. dollar was up against its New Zealand counterpart, but down against its Canadian cousin, with NZD/USD slumping 0.41% to hit 0.7503 and USD/CAD falling 0.14% to hit 0.9796.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.28% to hit 76.61.

The U.S. Bureau of Economic Analysis said on Friday that fourth quarter gross domestic product came in stronger-than-expected, rising at an inflation-adjusted annual rate of 3.1%, more than the expected 2.9% gain.

Later in the day, the U.S. was to release industry data on pending home sales as well as official data on personal spending, personal income and personal consumption expenditures.


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