Forexpros – The U.S. dollar regains the lead over its major counterparts on Wednesday on euro zone debt concerns despite the largest ever European Central Bank lender rescue package.
During late session U.S. trade, the greenback was higher against the euro, with EUR/USD off by 0.28 % to hit 1.3046.
The single currency was weighed by Italian and Spanish borrowing costs easing higher dashing hopes of a rapid solution to the debt crisis.
The greenback was down against the pound, with GBP/USD climbing 0.67% to hit 1.5674.
The ECB loaned EUR489.19 billion to 523 euro zone banks in the hopes that the funds would filter back to ease sovereign debt. However, economists scoffed at this attempt plunging the region back into pessimism.
The minutes from the Bank of England indicated that the central bank may ramp up its asset purchase program in the New Year.
Bank of America has warned that the euro may drop to the weakest level in almost a year and a half per Bloomberg, adding to the trepidation
Meanwhile, the greenback was higher against the yen and against the Swiss franc with USD/JPY higher by 0.24% to hit 78.08 and USD/CHF climbing 0.44% to hit 0.9355.
The greenback was lower against its Canadian neighbor but higher against its Australian and New Zealand counterparts with USD/CAD falling 0.31% to hit 1.0275, AUD/USD giving back 0.08 to hit 1.0073 and NZD/USD falling 0.03% to 0.7679
The dollar index, which tracks the performance of the greenback versus a basket of six other currencies, traded higher by 0.15% to 80.35.
In addition, a report by the National Association of Realtors stated that U.S. existing home sales climbed by 4% to a seasonally adjusted 4.42 million units in November, falling dramatically short of expectations for a gain of 15.5% to 5.03 million units.
Existing home sales in October were revised lower by nearly 14% to 4.25 million units from a previously reported 4.97 million.
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