By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The dollar index slipped on Wednesday, with investors moving out of the greenback’s safe haven after China’s central bank chief said his nation will increase its investment and support for Europe.
The dollar index DXY -0.28% , which tracks the U.S. currency against six rivals, slipped to 79.254, down from 79.607 in late North American trading on Tuesday.
At the same time the euro EURUSD +0.35% rose to $1.3166, up from $1.3094 late Tuesday.
The advance for the European currency followed comments from People’s Bank of China Gov. Zhou Xiaochuan who said he believes the euro zone’s challenges can be solved.
The Chinese central bank governor said he fully supports monetary measures taken by the European Central Bank during the crisis and that China plans to streamline and expand investment in Europe. Read more on PBOC comments.
Among other major currencies often seen as tied to risk appetite, the British pound GBPUSD +0.21% reached $1.5718, up from $1.5661 late the previous session. The Australian dollar AUDUSD +0.52% reached $1.0729, from $1.0648.
However, the dollar did extend its gain against the Japanese yen USDJPY +0.05% , often viewed as a fellow “safe-haven” currency.
The dollar bought ÂĄ78.53 in Asian trading hours Wednesday, up from ÂĄ78.49 in late trading Tuesday and well above its ÂĄ77.60 mark Monday.
The yen’s weakness against the dollar followed the Bank of Japan’s surprise move Tuesday to expand its asset-buying program. See currencies story.
Sarah Turner is MarketWatch's bureau chief in Sydney.
