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Forex - Dollar turns lower against most rivals, Euro boosted after Trichet

Published 03/28/2011, 12:18 PM
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Investing.com – The U.S. dollar was down against most of its major counterparts on Monday, after European Central Bank President Jean-Claude Trichet reiterated his tough stance about inflation, reinforcing expectations for a near-term rate hike by the ECB.

During U.S. morning trade, the greenback was down against the euro, with EUR/USD climbing 0.14% to hit 1.4107 after European Central Bank President Jean-Claude Trichet said inflation rates remained “durably above its price stability target”.

Meanwhile, the greenback was up against the pound, with GBP/USD shedding 0.12% to hit 1.6021.

The U.S. dollar was higher against the yen, with USD/JPY gaining 0.41% to hit 81.68. Earlier in the day, Japan’s nuclear safety agency said radiation levels in water in the stricken Fukushima Daiichi No. 2 reactor building were measured at more than 1,000 millisieverts per hour, while locals within a 20 kilometer evacuation zone were asked not to return to the area by officials.

However, the greenback was lower against the safe-haven Swiss franc, with USD/CHF dropping 0.28% to hit 0.9174.

Elsewhere, the greenback was down against its Canadian and Australian counterparts, with USD/CAD falling 0.58% to hit 0.9753 and AUD/USD climbing 0.32% to hit 1.0293. It earlier rose to an all-time high of 1.0314.

The U.S. dollar was also down against its New Zealand cousin, with NZD/USD gaining 0.15% to hit 0.7547.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.09% to hit 76.32.

Earlier in the day, a report from the U.S. Bureau of Economic Analysis showed that U.S. consumer spending rose more-than-expected in February, climbing by a seasonally adjusted 0.7%, surpassing expectations of a 0.5% gain.

The report also showed that personal income rose by 0.3%, while the core personal consumption expenditure index rose in line with expectations, adding 0.2%.

Also Monday, the National Association of Realtors said its pending home sales index jumped by 2.1% in February, after tumbling by 2.8% in January and exceeding expectations for a rise of 0.3%.


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