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Forex – Dollar trims gains after mostly upbeat U.S. data

Published 06/16/2011, 11:00 AM
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Investing.com – The U.S. dollar trimmed earlier gains against its major counterparts on Thursday, as risk aversion eased following the release of broadly better-than-expected U.S. economic data.

During early U.S. trade, the greenback was up against the euro, with EUR/USD shedding 0.18% to hit 1.4153.

Earlier in the day, the euro fell broadly after European Central Bank Governing Council member Nout Wellink said that the European bailout fund should be doubled if private investors are to contribute to additional refinancing aid for Greece.

The greenback was also up against the pound, with GBP/USD dropping 0.38% to hit 1.6134.

Official data released earlier showed that retail sales in the U.K. fell significantly more-than-expected in May.

Meanwhile, the greenback was down against the yen and the Swiss franc with USD/JPY shedding 0.31% to hit 80.69 and USD/CHF falling 0.28% to hit 0.8501.

Earlier Thursday, the Swiss National Bank left its benchmark interest rate unchanged at 0.25%, in a widely expected decision. Elsewhere, official data showed that Swiss industrial production fell significantly more-than-expected in the first quarter.

Elsewhere, the greenback remained higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.51% to hit 0.9840, AUD/USD falling 0.28% to hit 1.0545 and NZD/USD down 0.54% to hit 0.8020.

New Zealand’s Finance Minister Bill English said earlier that the local currency’s strength was hurting the economy and keeping interest rates low was better for growth.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.19%.

The Commerce Department said earlier that U.S. housing starts rose 3.5% to a seasonally adjusted annual rate of 560,000 units in May, outstripping expectations for an increase to 550,000.

In a separate report, the Labor Department said the number of people filing for initial jobless benefits last week fell to a seasonally adjusted 414K, surpassing expectations for a decline to 420K.

But the Federal Reserve Bank of Philadelphia said that its manufacturing index plummeted to -7.7 in June, compared to May’s reading of 3.9. Analysts had expected the index to increase to 7.0 in June.

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