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Forex - Dollar mixed vs. counterparts as Portugal remains in focus

Published 01/10/2011, 10:55 AM
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Investing.com – The U.S. dollar was mixed against its major counterparts on Monday, as speculation that Portugal would be forced to seek a bailout from the European Union and International Monetary Fund dented market sentiment.

During European late afternoon trade, the greenback was down against the euro, with EUR/USD rising 0.32% to hit 1.2947.

Earlier Monday, the cost of insuring European sovereign debt against default rose to a new record high, ahead of billions in euro-zone government bond auctions scheduled to take place later in the week.

The greenback was also down against the pound with GBP/USD edging up 0.1% to hit 1.5563. Earlier Monday, industry data showed that British house prices fell at their fastest pace in over a year in December.

Elsewhere, the greenback was down against the yen but up against the Swiss franc, with USD/JPY shedding 0.44% to hit 82.77 and USD/CHF advancing 0.23% to hit 0.9696.

Over the weekend, Swiss media outlets reported that the government was planning to hold talks with representatives from the country’s banking, machinery and tourism industries later in the week to discuss the strength of the Swiss franc.

Meanwhile, the greenback was up against its Canadian and Australian counterparts but down against its New Zealand cousin, with USD/CAD climbing 0.18% to hit 0.9953, AUD/USD falling 0.43% to hit 0.7605 and NZD/USD advancing 0.09% to hit 0.7604.

Earlier Monday, official data showed that the number of new building permits issued in Canada tumbled unexpectedly in November, falling for the second consecutive month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.21%.

Elsewhere Monday, European Central Bank President Jean-Claude Trichet, speaking in his capacity as chairman of the bimonthly Global Economy Meeting said the recovery of the global economy was “confirmed.”

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