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Forex - Dollar broadly lower vs. rivals as risk appetite recovers

Published 06/30/2011, 04:48 AM
Updated 06/30/2011, 04:48 AM
Investing.com – The U.S. dollar was broadly lower against its major counterparts on Thursday, after Greece’s parliament accepted an austerity package demanded by international lenders, aimed at averting the euro zone’s first sovereign debt default.

During European morning trade, the greenback was lower against the euro, with EUR/USD climbing 0.41% to hit 1.4495.

On Wednesday, the Greek parliament voted to accept the EUR28.4 billion, five-year austerity package needed to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.

But the greenback was higher against the pound, with GBP/USD shedding 0.25% to hit 1.6021.

Earlier in the day, a report showed that U.K. house prices were flat in June, while a separate report showed that consumer confidence fell more-than-expected this month.

Elsewhere, the greenback was down against both the yen and the Swiss franc, with USD/JPY dropping 0.52% to hit 80.36 and USD/CHF slipping 0.14% to hit 0.8333.

In addition, the greenback was down against its Canadian, Australian and New Zealand cousins, with USD/CAD shedding 0.34% to hit 0.9661, AUD/USD climbing 0.43% to hit 1.0728 and NZD/USD rising 0.38% to hit 0.8285.

Reserve Bank of New Zealand Governor Alan Bollard said earlier that the country’s economy is being lifted by strong commodity prices, which are supporting currency demand.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.37%.

Later Thursday, the U.S. was to publish its weekly government report on initial jobless claims, as well as data on manufacturing activity in the Chicago region.

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