Forex - Dollar broadly higher as contagion fears spur flight to safety
Investing.com
Published Jul 12, 2011 04:38AM ET
During European morning trade, the greenback was sharply higher against the euro, with EUR/USD dropping 0.87% to hit 1.3907.
Following Monday’s meeting, the ministers reaffirmed their “absolute commitment” to safeguarding financial stability in the euro zone and said new measures to deal with the crisis would be announced "shortly", but set no deadline.
The greenback was also up against the pound, with GBP/USD shedding 0.60% to hit 1.5810.
Earlier Tuesday, official data showed that consumer price inflation in the U.K. declined unexpectedly in June.
Elsewhere, the greenback was down sharply against the yen and dipped against the Swiss franc, with USD/JPY tumbling 0.81% to hit 79.60 and USD/CHF slipping 0.03% to hit 0.8356.
The Bank of Japan raised its economic outlook for the second month earlier and left its benchmark interest rate unchanged at 0.1%, in a widely expected decision.
Meanwhile, the greenback posted broad gains against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.42% to hit 0.9729, AUD/USD shedding 0.74% to hit 1.0576 and NZD/USD falling 1.63% to hit 0.8156.
A report earlier showed that Australian business confidence fell to a six-month low in June, as concerns over the impact of the high Australian dollar and the global economic outlook weighed.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.61%.
Later in the day, euro zone finance ministers were to meet to hold further discussions on the debt crisis, while the U.S. was to publish official data on its trade balance. Also Tuesday, the Federal Reserve was to publish the minutes of its June policy-setting meeting.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.