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Forex - Dollar broadly lower as Greece hopes bolster sentiment

Published 06/29/2011, 08:02 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Wednesday, as expectations that Greece’s parliament would adopt an austerity plan essential to securing further bailout loans bolstered demand for riskier assets.

During European afternoon trade, the greenback was lower against the euro, with EUR/USD climbing 0.28% to hit 1.4411.

Ahead of the vote, one of three deputies from Prime Minister George Papandreou’s ruling Socialist party backtracked and said he would now support the austerity plan.

The greenback was also lower against the pound, with GBP/USD rising 0.19% to hit 1.6030.

Earlier Wednesday, the Bank of England said U.K. net lending rose slightly more-than-expected in May, while mortgage approvals rose in line with expectations.

Elsewhere, the greenback slipped against the yen but climbed against the Swiss franc, with USD/JPY dipping 0.08% to hit 81.05 and USD/CHF climbing 0.34% to hit 0.8348.

In Switzerland, a report released earlier showed that the country’s KOF economic barometer fell in line with expectations this month, adding to concerns that the franc’s record gains are weighing on economic growth.

Meanwhile, the greenback was down against its Canadian, Australian and New Zealand cousins, with USD/CAD tumbling 0.79% to hit 0.9732, AUD/USD surging 0.69% to hit 1.0612 and NZD/USD jumping 1.12% to hit 0.8212.

Earlier in the day, official data showed that Canadian core consumer price inflation rose more-than-expected in May, fanning speculation over a near-term interest rate hike by the country’s central bank.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.35%.

Later Wednesday, the U.S. was to publish industry data on pending home sales.

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