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Dollar broadly lower ahead of Bernanke

Published 07/17/2012, 08:45 AM
Updated 07/17/2012, 08:45 AM
Investing.com - The U.S. dollar remained broadly weaker against the other major currencies on Tuesday, ahead of testimony by Federal Reserve Chairman Ben Bernanke, amid speculation over the possibility of more easing from the U.S. central bank.

During European afternoon trade, the dollar was marginally lower against the euro, with EUR/USD up 0.08% to 1.2278.

Expectations for another round of quantitative easing from the Fed were boosted on Monday, following data showing a third consecutive monthly decline in U.S. retail sales in June.

The greenback was little changed after official data showed that core consumer price inflation in the U.S. rose 0.2% in June, broadly in line with market expectations, while prices including food and energy costs were flat.

The greenback edged higher against the pound, with GBP/USD dipping 0.08% to 1.5623.

In the U.K., official data showed that consumer price inflation rose at the slowest pace since November 2009 in June, rising 2.4% year-on-year after a 2.8% increase in May.

Elsewhere, the greenback was higher against the yen, with USD/JPY adding 0.37% to trade at 79.15, but inched lower against the Swiss franc, with USD/CHF dipping 0.04% to hit 0.9781.

The yen eased after Japanese Finance Minister Jun Azumi indicated that the government remained prepared to intervene to stem the appreciation of the currency.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.04% to 1.0153, AUD/USD rising 0.32% to 1.0281 and NZD/USD easing down 0.03% to 0.7976.

The Australian dollar found support earlier after the minutes of the Reserve Bank of Australia’s July meeting indicated that policymakers are not planning any further rate cuts in the coming months.

Elsewhere, official data showed that consumer price inflation in New Zealand rose less-than-expected in the three months to June, adding to the view that the central bank will keep interest rates on hold in the coming months.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.05% to 83.26.

Later Tuesday, the U.S. was to publish official data on the capacity utilization rate and industrial production.


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