Forexpros – The U.S. dollar drifted lower against its major counterparts on Wednesday, as investors awaited the outcome of the Federal Reserve’s policy setting meeting later, while uncertainty over Greece’s referendum on its bailout meant investors remained on edge.
During U.S. morning trade, the dollar was down against the euro, with EUR/USD rising 0.74% to hit 1.3805.
Greece’s Prime Minister George Papandreou won the backing of his cabinet to hold a referendum on a EUR130 billion bailout package earlier and was due to meet with French and German leaders to discuss the planned vote later in the day.
The greenback was also lower against the pound, with GBP/USD adding 0.32% to hit 1.6001.
Earlier Wednesday, a report showed that construction sector activity in the U.K. grew more-than-expected in October, rising to a five-month high.
In addition, the greenback was lower against the yen and the Swiss franc, with USD/JPY shedding 0.45% to hit 78.01 and USD/CHF falling 0.67% to hit 0.8810.
Elsewhere, the greenback was down against its Canadian and Australian counterparts but inched higher against its New Zealand cousin, with USD/CAD tumbling 0.80% to hit 1.0121, AUD/USD rising 0.59% to hit 1.0391 and NZD/USD sliding 0.13% to hit 0.7938.
A government report earlier showed that the number of new building approvals issued in Australia fell significantly more-than-expected in September, falling 13.6%, far more than expectations for a 4.7% decline.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.59% to hit 76.98.
Risk appetite received support after a report showed that U.S. private sector employment increased more-than-expected in October, as the service sector expanded.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 110,000 in October, beating expectations for an increase of 100,000.
The previous month’s figure was revised up to a gain of 116,000 from a previously reported increase of 91,000.
Later Wednesday, the Fed was to conclude its two-day policy-setting meeting. Fed Chairman Ben Bernanke was to conduct the bank’s post-policy meeting press conference, while investors remained on alert for any signs that policymakers may be leaning towards additional monetary easing.
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