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Dollar steady vs. euro, higher vs. yen

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Investing.com - The dollar was steady against the euro on Monday and gained ground against the yen after Cyprus secured an international bailout, putting an end to uncertainty over a banking collapse and possible exit from the euro zone.

During European morning trade, the dollar was fractionally lower against the euro, with EUR/USD edging up 0.08% to 1.3000, after touching session highs of 1.3048 earlier in the session.

Early Monday, euro zone finance ministers 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.

However, all bank deposits under EUR100,000 will be "fully guaranteed".

The single currency remained under pressure as concerns over the economic outlook for the euro zone and political uncertainty in Italy weighed.

The dollar gained ground against the yen, with USD/JPY rising 0.28% to 94.74.

The dollar looked likely to remain supported close to recent three-and-a-half year highs against the yen as expectations for more aggressive easing steps by the Bank of Japan under new Governor Haruhiko Kuroda remained intact ahead of the bank's upcoming policy meeting next week.

The dollar was steady close to one-month lows against the pound, with GBP/USD dipping 0.03% to 1.5225.

The dollar slipped against the Swiss franc, with USD/CHF inching down 0.06% to 0.9398.

The greenback was broadly lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD down 0.12% to 1.0216, AUD/USD rising 0.23% to 1.0469 and NZD/USD edging up 0.01% to 0.8354.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.04% to 82.48.

Investors were looking ahead to a speech by Federal Reserve Chairman Ben Bernanke later in the trading day.

Last week, the U.S. central bank announced that it will leave monetary policy unchanged in spite of recent signs that the U.S. economic recovery is deepening.

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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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