Forex Pros – The U.S. dollar extended broad losses against its major rivals on Tuesday, after a high ranking Chinese official said the dollar would continue to weaken against other major currencies.
During European morning trade, the greenback was down against the euro, with EUR/USD climbing 0.63% to hit 1.4669.
Earlier in the day, official data showed that euro zone retail sales jumped more-than-expected in April.
The greenback was also down against the pound, with GBP/USD climbing 0.46% to hit 1.6431.
U.K. mortgage lender Halifax said earlier that house prices rose 0.1% on the month but fell 4.2% in the three months to May compared with a year ago, the biggest fall since October 2009.
Meanwhile, the greenback was higher against the yen but lower against the Swiss franc with USD/JPY easing up 0.13% to hit 80.20 and USD/CHF slipping 0.12% to hit 0.8335.
Japan’s Finance Minister Yoshihiko Noda said earlier that he will “closely watch” the currency market after the yen advanced to a one-month high against the dollar overnight.
Elsewhere, official data showed that Switzerland’s annualized rate of consumer price inflation increased only slightly in May.
The greenback was down against its Canadian and New Zealand counterparts but up against its Australian cousin, with USD/CAD shedding 0.54% to hit 0.9755, NZD/USD surging 0.85% to hit 0.8212 and AUD/USD slipping 0.13% to hit 1.0698.
Earlier Tuesday, the Reserve Bank of Australia held the overnight cash rate at 4.75% in a widely expected decision. Central bank Governor Glenn Stevens said the decision reflected “softened” prices for raw materials and an unemployment rate that has remained unchanged close to 5%.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.55%.
Later in the day, Federal Reserve Chairman Ben Bernanke was to speak. His comments would be closely watched for his views on the U.S. economic recovery.
ForexPros.com
