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Forex - Dollar lower vs. rivals on renewed E.Z. hopes

Published 12/31/2000, 07:00 PM
Updated 10/19/2011, 04:46 AM
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Investing.com - The U.S. dollar was broadly lower against its major counterparts on Wednesday, as guarded optimism over a plan to tackle the debt crisis in the euro zone supported demand for riskier assets.

During European morning trade, the greenback was down against the euro, with EUR/USD rising 0.46% to hit 1.3817.

The single currency found support after German Chancellor Angela Merkel said Sunday's European Union summit will mark an important step in tackling the debt crisis in the euro zone.

Late on Tuesday, Moody's Investors Service downgraded Spain's credit rating by two notches, to A1 from Aa2.

The greenback was also down against the pound, with GBP/USD gaining 0.10% to hit 1.5729.

Earlier in the day, the minutes of the Bank of England's October policy-setting meeting showed that policymakers believed that the rate of global growth has slackened while the financial crisis in the euro zone continues to threaten the U.K. economy.

Meanwhile, the greenback was fractionally lower against the yen but higher against the Swiss franc with USD/JPY inching down 0.02% to hit 76.80 and USD/CHF climbing 0.22% to hit 0.9006.

The greenback was down against its Canadian, Australian and New Zealand counterparts, with USD/CAD declining 0.21% to hit 1.0119, AUD/USD advancing 0.42% to hit 1.0307 and NZD/USD rising 0.38% to hit 0.7988.

In Australia, the Melbourne Institute said its leading index rose 8% in August, from an upwardly revised 0.6% increase the previous month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.25% to hit 77.10.

Later in the day, the U.S. was to release government data on building permits and consumer price inflation.

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