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Forex - Dollar broadly lower vs. rivals on oil price gains

Published 03/07/2011, 04:28 AM
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Investing.com – The U.S. dollar was broadly lower against its major counterparts on Monday, as rising crude oil prices and continued political unrest in North Africa and the Middle East weighed on the outlook for global economic growth.

During European morning trade, the greenback was lower against the euro, with EUR/USD rising 0.12% to hit 1.4005.

Earlier in the day, rating agency Moody's downgraded Greece's sovereign rating to B1 from Ba1 and assigned it a negative outlook.

The greenback was also down against the pound, with GBP/USD climbing 0.22% to hit 1.6306.

Elsewhere, the greenback slipped against the yen but was slightly higher versus the Swiss franc, with USD/JPY shedding 0.24% to hit 82.11 and USD/CHF easing up 0.06% to hit 0.9251.

Japan's Prime Minister Naoto Kan brushed off calls for his resignation earlier Monday, after Foreign Minister Seiji Maehara resigned Sunday, striking a blow to Kan as he seeks to win funding for the country’s budget.

Meanwhile, the greenback was down against its Canadian and Australian counterparts but up against its New Zealand cousin, with USD/CAD shedding 0.24% to hit 0.9710, AUD/USD gaining 0.25% to hit 1.0163 and NZD/USD dipping 0.06% to hit 0.7379.

Earlier Monday, New Zealand’s Prime Minister John Key reiterated his support for a cut in the benchmark interest rate after the country’s Treasury said that the February 22 earthquake will reduce economic growth by about 1.5% in 2011.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16%.

Later in the day, ECB head Jean-Claude Trichet was to speak at a public engagement, while the Sentix research institute was to publish a report on investor confidence in the euro zone. Also Monday, the U.S. was to publish official data on consumer credit.

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