Forex - Dollar up vs. most rivals as G-20 summit takes center stage

Published 11/11/2010, 11:07 AM
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Investing.com – The U.S. dollar was broadly higher against most of its major counterparts on Thursday, as investors shifted focus to the Group of 20 world economic summit, which got underway in Seoul.

During European afternoon trade, the greenback was up against the euro, with EUR/USD tumbling 0.82% to hit a 6-week low of 1.3671.

Earlier in the day, market research group Markit said that Irish borrowing costs rose to an all-time high, while the cost of insuring Portuguese and Spanish debt against default rose to record highs as well.

Also Thursday, official data showed that Greece’s unemployment rate increased to a record high in August, while Spain’s gross domestic product was flat in the third-quarter, widely in line with expectations.

The greenback was also up against the yen and Swiss franc, with USD/JPY gaining 0.24% to hit 82.47 and USD/CHF adding 0.22% to hit 0.9729.

But the dollar was down against the pound, with GBP/USD gaining 0.17% to hit 1.6151. Earlier in the day, the U.K. Council for Mortgage Lenders, an industry group, said English banks repossessed 5% fewer homes in the third-quarter than in the previous quarter, as low interest rates helped people keep up with mortgage payments. 

Meanwhile, the U.S. dollar was up against its Canadian, New Zealand and Australian counterparts, with USD/CAD rising 0.45% to hit 1.0057, NZD/USD falling 0.45% to hit 0.7793, while AUD/USD tumbled 0.77% to hit 0.9974.

Earlier in the day, official data showed that Australia’s unemployment rate rose unexpectedly in October, overshadowing a gain in jobs.

Meanwhile, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.66%.

On Thursday, G-20 leaders began a 2-day world economic summit amid growing concerns about trade imbalances and currency controls.

The summit was expected to be closely watched by investors following the Federal Reserve’s decision last week to buy its own debt to keep borrowing costs near zero, which attracted criticism from other G-20 leaders including Germany and China.


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