By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- The U.S. dollar rose against major rivals on Wednesday, with investors turning to the greenback as Europe’s debt troubles dominate global asset markets.
The dollar index DXY +0.18% reached 77.01 in Asian trading hours, from 76.925 in late North American trade on Tuesday.
The U.S. currency is viewed as a relative safe haven in times of market turbulence and Credit Agricole strategists noted that Europe's struggles to contain its sovereign debt woes are currently one of the main drivers for the dollar’s performance.
“The underlying mood still feels like a market wondering where the next banana skin for the euro is likely to lie. The idea that the mood on the euro is suddenly about to improve feels rather distant,” Credit Agricole said.
The euro EURUSD -0.38% retreated to $1.3671 on Wednesday, down from $1.3702, while sterling GBPUSD -0.15% declined to $1.5784, from $1.5799 on Tuesday.
Amid persistent concerns over a Greek default, German Chancellor Angela Merkel, French President Nicolas Sarkozy and Greek Prime Minister George Papandreou are scheduled to hold a conference call on Wednesday.
“The backdrop remains tenuous for the euro and the concerns that were so pressing of late, will remain so,” said currency strategists at Royal Bank of Canada.
On the U.S. data front, August retail sales data are due out later in the global trading day. Economists surveyed by MarketWatch are expecting sales to rise 0.3%, from a 0.5% gain the month before. See U.S. economic calendar.
The dollar USDJPY -0.10% bought 76.91 Japanese yen, from ¥76.88 in late trading Tuesday.
Sarah Turner is MarketWatch's bureau chief in Sydney.
