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Dollar mixed vs. counterparts in choppy trade

Published 03/15/2012, 05:47 AM
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Investing.com - The U.S. dollar was mixed against its major counterparts in choppy trade on Thursday, as the improving outlook for the U.S. economy continued to support the greenback, ahead of the release of a flurry of U.S. data later in the day.
 
During European morning trade, the dollar was slightly lower against the euro, with EUR/USD adding 0.25% to hit 1.3063.
 
The greenback remained supported after the Federal Reserve upgraded its outlook on the U.S. economy earlier this week, causing investors to trims back expectations for a third round of quantitative easing by the central bank.
 
The greenback was slightly lower against the pound, with GBP/USD slipping 0.06% to hit 1.5665.
 
Sentiment on sterling was dented after ratings agency Fitch placed the U.K.’s triple-A credit rating on negative outlook late Wednesday, warning that there is a slightly greater than 50% chance of a downgrade in the next two years, if the government eases back on implementing harsh austerity measures.
 
The greenback was lower against the Swiss franc, with USD/CHF shedding 0.39% to hit 0.9268.
 
The Swissie found support after the Swiss National Bank kept its minimum exchange rate floor of 1.20 per euro unchanged, following its monetary policy meeting earlier.
 
The greenback was hovering close to an 11-month high against the yen, with USD/JPY dipping 0.04% to hit 83.69.
 
The yen has remained under pressure since last month’s surprise decision by the Bank of Japan to ease monetary policy and set a targeted inflation rate, while the country’s increasing trade deficit has threatened the yen’s traditional safe haven status.
 
Earlier this week, the BoJ held off announcing any fresh easing measures following its policy meeting, but enlarged a loan fund for businesses in “high-growth” sectors, indicating that the central bank has not moved away from an easing policy.
 
Elsewhere, the greenback was lower against its Canadian, Australian and New Zealand cousins, with USD/CAD dipping 0.06% to hit 0.9920, AUD/USD rising 0.38% to hit 1.0492 and NZD/USD adding 0.61% to hit 0.8140.
 
Sentiment on the Aussie and the kiwi remained soft after China indicated Wednesday that it intends to maintain tight restrictions on the property market, warning that a loosening of controls could cause damage to the economy.

China is Australia’s largest and New Zealand’s second largest trading partner.
 
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.18% to hit 80.83.
 
Later in the day, the U.S. was to release government data on producer price inflation, as well as official data on unemployment claims. The country was also to produce reports on manufacturing activity in New York and Philadelphia.


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