Investing.com – The U.S. dollar was down against its major counterparts on Monday, as speculation of near-term interest rate increases lifted the euro and the pound while fears over political turmoil in Egypt eased.
During European late afternoon trade, the greenback was sharply lower against the euro, with EUR/USD surging 0.84% to hit 1.3726.
Earlier in the day, preliminary data estimated that consumer price inflation in the euro zone increased more-than-expected in January, rising to the highest level since October 2008.
The greenback was also posted steep losses against the pound, with GBP/USD jumping 0.95% to hit 1.601.
The pound was boosted after Bank of England policy maker Martin Weale said the central bank should raise interest rates to prevent inflation from becoming entrenched.
Elsewhere, the greenback was down against the yen and the Swiss franc, with USD/JPY sliding 0.16% to hit 81.99 and USD/CHF shedding 0.33% to hit 0.9387.
Meanwhile, the greenback was down against its Canadian and Australian counterparts but eased up against its New Zealand cousin, with USD/CAD shedding 0.14% to hit 0.9999, AUD/USD rising 0.26% to hit 0.9966 and NZD/USD slipping 0.07% to hit 0.773.
Earlier Monday, official data showed that Canada’s economy grew at the fastest monthly rate since March 2010 thanks to oil and gas extraction while higher prices for petroleum and metals lifted Canadian producer prices and raw materials prices slightly more than expected in December.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.66%.
Also Monday, U.S. government data showed that consumer spending grew by 0.7% in December. Americans' incomes rose by 0.4% for a second month in a row.
Meanwhile, the core price index for personal consumption expenditures, which excludes food and energy prices because of their volatility, was up 0.7% on a year-over-year basis, after rising 0.8% in November. Compared to the prior month, the core gauge was flat in December.
During European late afternoon trade, the greenback was sharply lower against the euro, with EUR/USD surging 0.84% to hit 1.3726.
Earlier in the day, preliminary data estimated that consumer price inflation in the euro zone increased more-than-expected in January, rising to the highest level since October 2008.
The greenback was also posted steep losses against the pound, with GBP/USD jumping 0.95% to hit 1.601.
The pound was boosted after Bank of England policy maker Martin Weale said the central bank should raise interest rates to prevent inflation from becoming entrenched.
Elsewhere, the greenback was down against the yen and the Swiss franc, with USD/JPY sliding 0.16% to hit 81.99 and USD/CHF shedding 0.33% to hit 0.9387.
Meanwhile, the greenback was down against its Canadian and Australian counterparts but eased up against its New Zealand cousin, with USD/CAD shedding 0.14% to hit 0.9999, AUD/USD rising 0.26% to hit 0.9966 and NZD/USD slipping 0.07% to hit 0.773.
Earlier Monday, official data showed that Canada’s economy grew at the fastest monthly rate since March 2010 thanks to oil and gas extraction while higher prices for petroleum and metals lifted Canadian producer prices and raw materials prices slightly more than expected in December.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.66%.
Also Monday, U.S. government data showed that consumer spending grew by 0.7% in December. Americans' incomes rose by 0.4% for a second month in a row.
Meanwhile, the core price index for personal consumption expenditures, which excludes food and energy prices because of their volatility, was up 0.7% on a year-over-year basis, after rising 0.8% in November. Compared to the prior month, the core gauge was flat in December.