CN:Forex - Dollar rallies vs. rivals as risk sentiment crumbles
Forex Pros - The U.S. dollar rallied against its major counterparts on Wednesday, as ongoing uncertainty over how to resolve the Greek sovereign debt crisis curbed investor demand for higher yielding assets.
During European afternoon trade, the greenback was up against the euro, with EUR/USD tumbling 0.95% to hit 1.4301.
Ratings agency Moody's placed three of Frances largest lenders under review, pending possible downgrades due to their exposure to Greek debt.
The greenback was also up against the pound, with GBP/USD dropping 0.69% to hit 1.6255.
Earlier in the day, official data showed that the number of people in the U.K. claiming unemployment benefits increased sharply in May. A separate report showed that average earnings fell more-than-expected.
The greenback was higher against the yen and the Swiss franc with USD/JPY climbing 0.25% to hit 80.68 and USD/CHF advancing 0.63% to hit 0.8507.
Earlier Wednesday, official data showed that Swiss producer price inflation declined unexpectedly in May.
In addition, the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.12% to hit 0.9689, AUD/USD dipping 0.02% to hit 1.0682 and NZD/USD shedding 0.60% to hit 0.8130.
Reserve Bank of Australia Governor Glenn Stevens said earlier that policy makers will need to raise interest rates at some stage.
Separately, official data showed that retail sales in New Zealand rose in the first quarter, increasing for the first time in three quarters.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.80%.
Later in the day, the U.S. was to publish official data on consumer price inflation, as well as reports on foreign investment, industrial production and manufacturing activity.
