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Dollar steady to lower vs. rivals, eyes on Cyprus

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Investing.com - The U.S. dollar was steady to lower against the other major currencies on Tuesday, as news of an international bailout deal for Cyprus continued to support demand for riskier assets, although concerns future euro zone bank rescues could impose a burden on depositors weighed.

During European morning trade, the dollar was lower against the euro, with EUR/USD adding 0.19% to 1.2877.

The single currency remained supported after euro zone finance ministers on Monday rubber stamped a EUR10 billion international bailout for Cyprus that will see the closure of the country's second largest lender Laiki Bank and inflict heavy losses deposits of more than EUR100,000.

Investors remained cautious however after Eurogroup head, Jeroen Dijsselbloem, said that the rescue program agreed for Cyprus represents a new model for resolving euro zone banking problems and other countries may have to restructure their banking sectors.

He later appeared to backtrack, saying Cyprus was a specific case with exceptional challenges.

The greenback was steady against the pound, with GBP/USD inching up 0.02% to 1.5182.

Elsewhere, the greenback was steady against the yen and the Swiss franc, with USD/JPY easing 0.06% to trade at 94.10, and with USD/CHF dipping 0.03% to 0.9483.

The yen remained under pressure after the new Bank of Japan Governor, Haruhiko Kuroda, earlier reaffirmed his commitment to bold monetary easing to achieve 2% inflation.

Kuroda said the central bank will discuss purchasing more bonds with longer maturities. The BoJ currently buys government debt maturing in three years or less through its JPY76 trillion asset-purchase program.

The greenback was steady to lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging down 0.07% to 1.0206, AUD/USD adding 0.11% to 1.0475 and NZD/USD easing 0.01% to 0.8350.

The Aussie gained ground earlier, as speculation over upcoming rate cuts by the Reserve Bank of Australia declined when RBA Governor Glenn Stevens did not comment on monetary policy and declined to answer a question on fiscal policy at the Australian Securities and Investments Commission Annual Forum.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.13% to 82.95.

Later in the day, the U.S. was to release government reports on durable goods orders and new home sales as well as a report on consumer confidence.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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