Investing.com - The U.S. dollar was mixed against its major counterparts on Wednesday, as speculation over the possibility of more easing from the Federal Reserve weighed, but concerns over the situation in the euro zone kept markets in check.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD gaining 0.27% to hit 1.2537.
The greenback remained under pressure after Chicago Fed President Charles Evans reiterated his support for additional monetary stimulus on Tuesday.
But worries that a bailout of as much as EUR100 billion for Spain’s banks will add to the country’s debt burden and make it more difficult for Madrid to access credit markets continued to weigh on investor sentiment.
The yield on Spanish 10-year bonds ticked up to 6.76% earlier, close to the critical 7% level, which is viewed as unsustainable in the long run after it prompted bailouts in Greece, Ireland and Portugal.
Investors were also jittery ahead of Sunday’s general election in Greece, which could determine the country’s future in the euro zone.
Earlier Wednesday, Italy saw one-year borrowing costs surge to the highest level since December at an auction of government bonds, amid growing fears the country will be the next euro zone member to require a bailout.
Meanwhile, official data showed that industrial production in the euro zone fell 0.8% in April, down for the second consecutive month, underlining fears over the health of the region’s economy.
The greenback pushed higher against the pound, with GBP/USD losing 0.17% to hit 1.5545.
Elsewhere, the greenback edged higher against the yen but turned lower against the Swiss franc, with USD/JPY up 0.15% to hit 79.63 and USD/CHF sliding 0.25% to hit 0.9581.
In Switzerland, official data showed that producer price index ticked down 0.2% in May, in line with expectations after a 0.1% decline the previous month.
The greenback was broadly weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.02% to hit 1.0261, AUD/USD rising 0.17% to hit 0.9974 and NZD/USD gaining 0.20% to hit 0.7786.
Earlier Wednesday, Reserve Bank of Australian Governor Glen Stevens indicated that the outlook for the domestic economy was upbeat and said consumers should take advantage of the Australian dollar's strength, which he said was bringing down the price of petrol and other imported goods.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.11%, to trade at 82.78.
Later Wednesday, the U.S. was to release official data on retail sales and producer price inflation, as well as a report on crude oil stockpiles.
During European afternoon trade, the dollar was lower against the euro, with EUR/USD gaining 0.27% to hit 1.2537.
The greenback remained under pressure after Chicago Fed President Charles Evans reiterated his support for additional monetary stimulus on Tuesday.
But worries that a bailout of as much as EUR100 billion for Spain’s banks will add to the country’s debt burden and make it more difficult for Madrid to access credit markets continued to weigh on investor sentiment.
The yield on Spanish 10-year bonds ticked up to 6.76% earlier, close to the critical 7% level, which is viewed as unsustainable in the long run after it prompted bailouts in Greece, Ireland and Portugal.
Investors were also jittery ahead of Sunday’s general election in Greece, which could determine the country’s future in the euro zone.
Earlier Wednesday, Italy saw one-year borrowing costs surge to the highest level since December at an auction of government bonds, amid growing fears the country will be the next euro zone member to require a bailout.
Meanwhile, official data showed that industrial production in the euro zone fell 0.8% in April, down for the second consecutive month, underlining fears over the health of the region’s economy.
The greenback pushed higher against the pound, with GBP/USD losing 0.17% to hit 1.5545.
Elsewhere, the greenback edged higher against the yen but turned lower against the Swiss franc, with USD/JPY up 0.15% to hit 79.63 and USD/CHF sliding 0.25% to hit 0.9581.
In Switzerland, official data showed that producer price index ticked down 0.2% in May, in line with expectations after a 0.1% decline the previous month.
The greenback was broadly weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.02% to hit 1.0261, AUD/USD rising 0.17% to hit 0.9974 and NZD/USD gaining 0.20% to hit 0.7786.
Earlier Wednesday, Reserve Bank of Australian Governor Glen Stevens indicated that the outlook for the domestic economy was upbeat and said consumers should take advantage of the Australian dollar's strength, which he said was bringing down the price of petrol and other imported goods.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.11%, to trade at 82.78.
Later Wednesday, the U.S. was to release official data on retail sales and producer price inflation, as well as a report on crude oil stockpiles.