Forexpros – The U.S. dollar extended broad gains against its major counterparts on Monday, as concerns over sovereign debt loads in the U.S and the euro zone supported demand for the relative safety of the greenback.
During European afternoon trade, the dollar was up against the euro, with EUR/USD dropping 0.56% to hit 1.3447.
Earlier in the day, the spread between 10-year Spanish bond yields and their German counterparts widened as investors remained jittery despite the election of a new Spanish government which was expected to implement harsh austerity measures.
Also Monday, rating agency Moody’s said a rise in French government debt yields and weaker growth prospects could be negative for the outlook on the country’s credit rating.
The greenback was also sharply higher against the pound, with GBP/USD tumbling 1.11% to hit 1.5631.
Earlier in the day, a report by British property website Rightmove showed that house price inflation fell 3.1% in November after a 2.8% rise the previous month.
Elsewhere, the greenback was steady against the yen and rose against the Swiss franc, with USD/JPY inching down 0.03% to hit 76.87, and USD/CHF advancing 0.39% to hit 0.9202.
In Japan, government data showed that exports fell in October at the fastest pace in five months, underscoring concerns that sputtering global growth and a strong yen will take their toll on the country’s economy.
The greenback was also sharply higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.84% to hit 1.0363, AUD/USD shedding 1.28% to hit 0.9881 and NZD/USD declining 0.87% to hit 0.7499.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.52% to hit 78.63.
Earlier Monday, a U.S. congressional “super committee” failed to agree on a package of measures to slash USD1.2 trillion off the U.S. deficit over the next 10 years.
Later in the day, the U.S. was to release industry data on existing home sales.
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