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Dollar higher vs. euro, lower against yen

Published 01/08/2013, 08:51 AM
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Investing.com - The U.S. dollar pushed higher against the euro but remained lower against the yen on Tuesday after Japan’s finance minister said Tokyo will purchase bonds from the European Stability Mechanism, the euro zone's permanent bailout fund.

During European afternoon trade, the greenback turned higher against the euro, with EUR/USD down 0.30% to 1.3076.

The euro fell against the dollar after official data showed that the unemployment rate in the euro zone hit a new record high of 11.8% in November, up from 11.7% in October, underlining concerns over the outlook for growth in the region.

Meanwhile, German factory orders fell 1.8% in November, compared to expectations for a 1.4% drop as overseas demand declined.

A separate report showed that euro zone retail sales increased 0.1% in November, disappointing expectations for a 0.3% rise. 

The euro found support earlier after Japanese Finance Minister Taro Aso said his government would buy bonds issued by the ESM in order to help stabilize the financial situation in the bloc.

The dollar was weaker against the yen, with USD/JPY down 0.30% to 87.52.

The greenback was against the pound and the Swiss franc, with GBP/USD falling 0.37% to 1.6056 and USD/CHF rising 0.34% to 0.9242.

The greenback was trading in a narrow range against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.05% to 0.9863, AUD/USD slipping 0.11% to 1.0491 and NZD/USD losing 0.20% to trade at 0.8351.

Earlier Tuesday, official data showed that Australia’s trade balance widened to AUD2.6 billion in November from AUD2.4 billion in October, the largest deficit in nearly five years.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.21% to 80.53.

Later in the day, the U.S. was to release private sector data on economic optimism, as well as official data on consumer credit.



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