Forex - Dollar pares gains vs. rivals as euro stabilizes
Investing.com
Published Jul 12, 2011 10:46AM ET
During early U.S. trade, the greenback was higher against the euro, with EUR/USD shedding 0.27% to hit 1.3992.
The single currency was supported by speculation that the European Central Bank stepped in to buy peripheral euro zone debt earlier in the day.
Meanwhile, Reuters reported that European Union leaders were preparing to hold an emergency summit meeting later in the week after finance ministers acknowledged that some form of Greek default may be necessary to prevent contagion.
The greenback was also up against the pound, with GBP/USD dipping 0.03% to hit 1.5900.
Earlier Tuesday, official data showed that consumer price inflation in the U.K. declined unexpectedly in June, causing investors to pare back expectations for a near-term rate hike by the Bank of England.
Elsewhere, the greenback remained lower against the yen and the Swiss franc, with USD/JPY falling 0.88% to hit 79.54 and USD/CHF sliding 0.23% to hit 0.8338.
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 erased gains against its Canadian counterpart but remained stronger against its Australian and New Zealand cousins, with USD/CAD slipping 0.15% to hit 0.9672, AUD/USD shedding 0.55% to hit 1.0595 and NZD/USD tumbling 1.35% to hit 0.8178.
Earlier in the day, government data showed that the U.S. trade deficit widened more-than-expected in May, while a separate report showed that Canada’s trade deficit contracted in line with market expectations during the month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.13%.
Later Tuesday, the Federal Reserve was to publish the minutes of its June policy-setting meeting.
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Written By: Investing.com
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