Forex - Dollar up vs. most rivals as risk aversion on the rise

Published 09/07/2010, 11:08 AM
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Investing.com – The U.S. dollar was up against most of the other major currencies on Tuesday, as risk aversion rose on renewed concerns over the euro zone’s economic recovery.  

During European afternoon trade, the greenback was up against the euro, with EUR/USD tumbling 1.28% to hit 1.2710.

Earlier in the day, European Commissioner for Economic and Monetary Affairs, Olli Rehn sounded cautious over the euro zone’s economic outlook, saying “We are certainly not out of the woods yet", after a German report renewed concerns over the health of euro zone banks.

The greenback was also up against the pound, with GBP/USD falling 0.59% to hit 1.5303.

But the greenback was down against the yen and Swiss franc, with USD/JPY shedding 0.56% to hit 83.73 and USD/CHF declining 0.04% to hit 1.019.

Earlier in the day, Bank of Japan Governor Masaaki Shirakawa said the central bank was paying close attention to the yen’s movements in the currency market and repeated that it would act to curb the currency’s rises “when necessary”. 

Meanwhile, the greenback was up against its Canadian, Australian and New Zealand counterparts, as USD/CAD gained 0.91% to hit 1.0448, AUD/USD shed 0.55% to hit 0.9124 and NZD/USD fell 0.43% to hit 0.7201.

Earlier in the day, the Reserve Bank of Australia decided to keep its benchmark interest rate unchanged for the fourth consecutive month in September.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.91%.

Later in the day, the U.S. was to produce data on consumer confidence.

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