Forex - Dollar up vs. most rivals as risk aversion rises

Published 09/07/2010, 05:59 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 increased over renewed concerns on the global economic recovery.  

During European morning trade, the greenback was up against the euro, with EUR/USD shedding 1.01% to hit 1.2746.

Late Monday, a report from Germany’s Banking Association renewed concerns over the health of euro zone banks, saying that the country’s 10 largest banks would need EUR 105 billion of additional capital in order to meet new banking regulations put in place to prevent future financial crises.

The greenback was also up against the pound and the Swiss franc, with GBP/USD falling 0.17% to hit 1.5367 and USD/CHF gaining 0.17% to hit 1.0143.

Earlier in the day, official data showed that Switzerland’s unemployment rate remained unchanged, despite expectations of a decline.

However, the greenback was down against the yen, with USD/JPY shedding 0.47% to hit 83.82.

Earlier Tuesday, Japan’s Finance Minister Yoshihiko Noda repeated that the government would take “firm measures on currencies when needed”. His comments came after the Bank of Japan left its benchmark interest rate unchanged, but held off on taking action to curb the strengthening yen.

Meanwhile, the greenback was up against its Canadian, Australian and New Zealand counterparts, as USD/CAD gained 0.60% to hit 1.0418, AUD/USD shed 0.87% to hit 0.9097 and NZD/USD fell 0.39% to hit 0.7206.

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 0.67%.

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