Investing.com - The U.S. dollar regained ground against its major counterparts on Monday, after the initial optimism which greeted news that Spain had secured a bailout for its banks faded as investors began to focus on the details of the rescue package.
During European afternoon trade, the dollar trimmed back losses against the euro, with EUR/USD up just 0.20% to trade at 1.2543, after coming off a session high of 1.2669.
The euro strengthened broadly earlier after euro zone finance ministers agreed at the weekend to grant Spain a loan of up to EUR100 billion, which the government will use to recapitalize the country’s ailing banking sector.
But initial optimism faded as details of the Spanish bailout agreement remained unclear, with the amount Madrid will receive to be decided after the results of independent banking audits are published later this month.
Meanwhile, investors remained focused on the outcome of a Greek general election this weekend, which could determine if the country is to remain on in the euro zone.
The greenback remained lower against the pound, with GBP/USD up 0.37% to hit 1.5527, off an earlier high of 1.5582.
Elsewhere, the greenback remained lower against the yen and the Swiss franc, with USD/JPY dipping 0.06% to hit 79.41 and USD/CHF slipping 0.22% to hit 0.9572.
In addition, the greenback was weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD sliding 0.09% to hit 1.0250, AUD/USD gaining 0.36% to hit 0.9951 and NZD/USD rising 0.40% to hit 0.7734.
The growth linked currencies shrugged off official data showing that Chinese inflation, industrial output and retail sales disappointed expectations in May, as unexpectedly strong import data eased concerns over a ‘hard landing’ in the world’s second largest economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26%, to trade at 82.69.
Also Monday, official data showed that French manufacturing output fell 0.7% in April, while a separate report showed that Italy’s gross domestic product contracted by 0.8% in the first quarter, underlining concerns that economic growth in the euro area is faltering.
During European afternoon trade, the dollar trimmed back losses against the euro, with EUR/USD up just 0.20% to trade at 1.2543, after coming off a session high of 1.2669.
The euro strengthened broadly earlier after euro zone finance ministers agreed at the weekend to grant Spain a loan of up to EUR100 billion, which the government will use to recapitalize the country’s ailing banking sector.
But initial optimism faded as details of the Spanish bailout agreement remained unclear, with the amount Madrid will receive to be decided after the results of independent banking audits are published later this month.
Meanwhile, investors remained focused on the outcome of a Greek general election this weekend, which could determine if the country is to remain on in the euro zone.
The greenback remained lower against the pound, with GBP/USD up 0.37% to hit 1.5527, off an earlier high of 1.5582.
Elsewhere, the greenback remained lower against the yen and the Swiss franc, with USD/JPY dipping 0.06% to hit 79.41 and USD/CHF slipping 0.22% to hit 0.9572.
In addition, the greenback was weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD sliding 0.09% to hit 1.0250, AUD/USD gaining 0.36% to hit 0.9951 and NZD/USD rising 0.40% to hit 0.7734.
The growth linked currencies shrugged off official data showing that Chinese inflation, industrial output and retail sales disappointed expectations in May, as unexpectedly strong import data eased concerns over a ‘hard landing’ in the world’s second largest economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26%, to trade at 82.69.
Also Monday, official data showed that French manufacturing output fell 0.7% in April, while a separate report showed that Italy’s gross domestic product contracted by 0.8% in the first quarter, underlining concerns that economic growth in the euro area is faltering.