Forexpros – The dollar strengthened against the world’s major currencies on Thursday, resuming its role as a safe-haven investment as uncertainty gripped currencies elsewhere in the world when the European debt crisis ruffled feathers anew.
The greenback on Friday was up against the euro, with EUR/USD shedding 0.11% to hit 1.2927.
The European Central Bank continued to report that banks are depositing hefty sums of their money in overnight deposit accounts instead of lending it out, which is reheating fears that the continent’s credit crunch is going nowhere.
Also in Europe, Italian financial institution UniCredit placed a EUR7.5 billion capital increase at a steep discount, which raised concerns that other banks will have a tough time raising capital as well as waning faith in the financial sector in general.
Meanwhile, the dollar was stronger against the pound, with Cable falling 0.07% to hit 1.5608.
The greenback was up 0.02% against the yen, with USD/JPY was trading at 76.73, and up against the Swiss franc, with USD/CHF climbing 0.05% at 0.9420.
The greenback was up against its counterparts in Canada, Australia and New Zealand, with USD/CAD rising 0.09% at 1.0137, AUD/USD down 0.31% to 1.0334 and NZD/USD down 0.02% at 0.7874.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10% at 80.45.
Currency markets are eagerly awaiting unemployment data out of the U.S. on Friday, when the Bureau of Labor Statistics will release its non-farm payroll data for December.
Later Thursday in the U.S., the ADP National Employment Report will reflect on private-sector hiring while initial jobless claims will paint a picture of the more immediate joblessness outlook for the country.
The U.S. will also release gasoline and crude inventories Thursday, which may shed some light on overall demand for energy used to fuel economic growth.