IV:Dollar lower vs. yen, extends gains vs. euro, pound
Investing.com - The dollar was lower against the yen on Wednesday, but extended gains against the euro as Tuesday’s strong U.S. data underlined the view that the economic recovery is continuing.
During European late trade, the dollar was lower against the yen, with USD/JPY sliding 0.27% to 97.50.
Safe haven demand for the yen was boosted by falls in Japanese equities amid sustained fears over a credit squeeze in China, despite assurances from the country’s central bank that it was acting to support financial institutions with liquidity.
Demand for the dollar continued to be underpinned after data on Tuesday showed that U.S. consumer confidence rose to highest level since January 2008 in the current month, while another report showed that U.S. new home sales rose to an almost five year high May.
A separate report showed that U.S. durable goods orders rose unexpectedly in May.
Fed Chairman Ben Bernanke said last week that the bank could begin tapering asset purchases by the end of this year if the economy continues to pick up.
The dollar rose to fresh three-week highs against the euro, with EUR/USD down 0.40% to 1.3026.
European Central Bank President Mario Draghi said Wednesday the overall economic outlook for the euro zone still warrants accommodative monetary policy and urged euro zone political leaders to implement economic reforms in order to spur growth.
The greenback climbed to session highs against the pound, with GBP/USD down 0.41% to 1.5357.
The Bank of England’s financial stability warned banks, insurers and borrowers of the dangers of sharp rises in interest rates on Wednesday and said the financial crisis in the euro zone still posed a threat to the U.K. economy.
The dollar extended gains to hit session highs against the Swiss franc, with USD/CHF rising 0.32% to 0.9409.
The greenback was broadly lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.31% to 0.9288, NZD/USD up 0.56% to 0.7782 and USD/CAD falling 0.32% to 1.0479.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.36% to 83.08.
Finance ministers from the European Union were to hold talks in Brussels later Wednesday, while the U.S. was to release revised data on first quarter economic growth.
