Forex - Dollar broadly higher as debt concerns punish euro
Investing.com
Published May 11, 2011 10:50AM ET
During U.S. morning trade, the greenback was higher against the euro, with EUR/USD tumbling 0.82% to hit 1.4290.
Earlier in the day, ratings agency Standard & Poor's said there was a possibility that Portuguese banks might require more significant government support, which could place downward pressure on sovereign ratings.
But the greenback was lower against the pound, with GBP/USD rising 0.47% to hit 1.6444.
Earlier Wednesday, the Bank of England indicated that interest rates could rise from the third quarter of 2011 to tackle high inflation.
Elsewhere, the greenback was higher against the yen and the Swiss franc with USD/JPY advancing 0.48% to hit 81.17 and USD/CHF climbing 0.44% to hit 0.8836.
Meanwhile, the greenback was slightly higher against its Canadian counterpart but was lower against its Australian and New Zealand cousins, with USD/CAD easing up 0.02% to hit 0.9570, AUD/USD tumbling 0.68% to hit 1.0762 and NZD/USD shedding 0.49% to hit 0.7912.
Earlier in the day, a government report showed that Canada's trade surplus made a small rebound in March after two months of decline, as broad gains in exports outstripped higher imports.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.45%.
Also Wednesday, the U.S. Commerce Department said the deficit rose to USD48.2 billion, the widest since June 2010, from a slightly downwardly revised USD45.4 billion in February. Economists had expected the trade deficit to widen to USD47.0 billion in March.
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Written By: Investing.com
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