Investing.com - The U.S. dollar was modestly lower against its major counterparts on Thursday, as upbeat German business confidence data supported demand for riskier assets but concerns over debt contagion in the euro zone continued to cloud the outlook.
During European morning trade, the dollar was down against the euro, with EUR/USD rising 0.41% to hit 1.3397.
The euro found support after a report showed that German business confidence improved unexpectedly in November, indicating that the euro zone’s largest economy is coping with the region’s debt crisis better than experts had feared.
German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 106.6 in November from 106.4 in October.
Analysts had expected the index to fall to 105.5.
Sentiment on the single currency soured on Wednesday after the least successful German bond sale since the launch of the single currency sparked concerns over contagion to core euro zone economies.
The greenback was also lower against the pound, with GBP/USD climbing 0.23% to hit 1.5561.
In the U.K., revised data showed that gross domestic product expanded by 0.5% in the third quarter, in line with expectations.
In addition, the greenback was weaker against the yen and the Swiss franc, with USD/JPY sliding 0.23% to hit 77.12 and USD/CHF shedding 0.20% to hit 0.9182.
Earlier in the day, Switzerland’s President Micheline Calmy-Rey said the overvaluation of the Swiss franc posed a serious threat to the country’s economy and carried the risk of deflation and added that the Swiss National Bank was committed to “a substantial and lasting weakening of the franc."
Elsewhere, the greenback was broadly lower against its Canadian, Australian and New Zealand cousins, with USD/CAD shedding 0.42% to hit 1.0442, AUD/USD jumping 0.96% to hit 0.9782 and NZD/USD surging 0.70% to hit 0.7550.
In Australia, central bank Governor Glenn Stevens defended the bank's policy decisions over the past year, saying they were the right calls, but said more time is needed to see if he is right.
The Reserve Bank of Australia cut rates in November, despite the country experiencing the biggest commodity price boom in a decade.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.44% to hit 78.95.
Markets in the U.S. were to remain closed on Thursday for Thanksgiving.
During European morning trade, the dollar was down against the euro, with EUR/USD rising 0.41% to hit 1.3397.
The euro found support after a report showed that German business confidence improved unexpectedly in November, indicating that the euro zone’s largest economy is coping with the region’s debt crisis better than experts had feared.
German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 106.6 in November from 106.4 in October.
Analysts had expected the index to fall to 105.5.
Sentiment on the single currency soured on Wednesday after the least successful German bond sale since the launch of the single currency sparked concerns over contagion to core euro zone economies.
The greenback was also lower against the pound, with GBP/USD climbing 0.23% to hit 1.5561.
In the U.K., revised data showed that gross domestic product expanded by 0.5% in the third quarter, in line with expectations.
In addition, the greenback was weaker against the yen and the Swiss franc, with USD/JPY sliding 0.23% to hit 77.12 and USD/CHF shedding 0.20% to hit 0.9182.
Earlier in the day, Switzerland’s President Micheline Calmy-Rey said the overvaluation of the Swiss franc posed a serious threat to the country’s economy and carried the risk of deflation and added that the Swiss National Bank was committed to “a substantial and lasting weakening of the franc."
Elsewhere, the greenback was broadly lower against its Canadian, Australian and New Zealand cousins, with USD/CAD shedding 0.42% to hit 1.0442, AUD/USD jumping 0.96% to hit 0.9782 and NZD/USD surging 0.70% to hit 0.7550.
In Australia, central bank Governor Glenn Stevens defended the bank's policy decisions over the past year, saying they were the right calls, but said more time is needed to see if he is right.
The Reserve Bank of Australia cut rates in November, despite the country experiencing the biggest commodity price boom in a decade.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.44% to hit 78.95.
Markets in the U.S. were to remain closed on Thursday for Thanksgiving.