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Forex – Dollar broadly higher vs. rivals on risk aversion

Published 12/31/2000, 07:00 PM
Updated 11/21/2011, 04:49 AM
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Investing.com - The U.S. dollar was broadly higher against most of its major counterparts on Monday, as sustained concerns over the capacity of euro zone leaders to tackle the region’s debt crisis weighed on demand for riskier assets.

During European morning trade, the dollar was up against the euro, with EUR/USD dropping 0.49% to hit 1.3457.

On Sunday, Spain’s center-right opposition People's Party won a crushing election victory and was expected to push through drastic austerity measures to try shore up the country’s economy.

But investors were still wary of how policymakers will be able to bring down the borrowing costs of many euro-zone governments from current elevated levels.

The greenback was also higher against the pound, with GBP/USD tumbling 0.64% to hit 1.5704.

Earlier in the day, a report by British property website Rightmove showed that house price inflation fell 3.1% in November after a 2.8% rise the previous month.

Elsewhere, the greenback dipped against the yen but advanced against the Swiss franc, with USD/JPY edging down 0.07% to hit 76.84, and USD/CHF advancing 0.34% to hit 0.9198.

In Japan, government data showed that exports fell in October at the fastest pace in five months, underscoring concerns that sputtering global growth and a strong yen will take their toll on the country’s economy.

The greenback was also higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.49% to hit 1.0327, AUD/USD shedding 0.95% to hit 0.9913 and NZD/USD declining 0.70% to hit 0.7512.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.42% to hit 78.55.

Also Monday, a U.S. congressional "super committee" was expected to formally announce the failure of its three-month-long effort to forge a USD1.2 trillion deficit reduction plan.

Later in the day, the U.S. was to release industry data on existing home sales.

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