Forexpros – The U.S. dollar was broadly higher against its major counterparts on Monday, as concerns over the sovereign debt crisis in the euro zone mounted, spurring increased safe haven demand.
During European morning trade, the greenback was up against the euro, with EUR/USD shedding 0.41% to hit 1.3598.
The single currency was pressured lower after media reports that Germany’s government has planned to insulate the country’s banking sector in the event that Greece is forced to default on its debts.
Meanwhile, last week’s resignation of European Central Bank governing council member Juergen Stark highlighted divisions among senior policymakers over the handling of the region’s debt crisis.
The greenback was also higher against the pound, with GBP/USD falling 0.34% to hit 1.5825.
Elsewhere, the greenback was sharply lower against the yen, but strengthened against the Swiss franc, with USD/JPY tumbling 0.93% to hit 76.86 and USD/CHF rising 0.24% to hit 0.8855.
Meanwhile, the greenback was higher against its Canadian, Australian and New Zealand cousins, with USD/CAD climbing 0.20% to hit 0.9987, AUD/USD plunging 1.42% to hit 1.0320 and NZD/USD falling 0.70% to hit 0.8161.
Earlier in the day, official data showed that Australia’s trade surplus expanded less-than-expected in July as exports exceeded imports by AUD1.83 billion, compared with a revised AUD1.82 billion surplus the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.21% to hit 77.90.
Later Monday, German Chancellor Angela Merkel was to hold talks on the euro zone debt crisis with European Commission President Jose Manuel Barroso.