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Forex - Dollar advances in early Asian trade

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Forexpros - The U.S. dollar extended gains against its major counterparts Thursday, after all three benchmark U.S. stock indexes sank into the red for the year, with the Dow suffering its worst performance since December 2008..

In early Asian trade, the greenback was higher against the euro, with EUR/USD easing 0.15% to hit 1.4071.

After Tuesday's approval of a deal to raise the USD14.3 debt ceiling, market attention returned to the economy, where weak economic numbers and impending cuts in government spending pointed to a slowdown in the U.S. economy.

Continued threats to debt sovereignty in Italy and Spain contributed to a dealer exodus to treasuries and the U.S. dollar as investors sought to cover equity positions.

The Dow Jones Industrial Average plunged 4.3% to 11,383.68, the Nasdaq Composite Index sank 5.1%, its worst percentage drop since January 2009, to 2,556.39, and the S&P 500 slumped 4.8%, its worst percentage fall since February 2009, to 1,200.07.

Before the session, the U.S Labor Department reported that initial jobless claims fell by 1,000 to a seasonally adjusted 400,000 last week, but the figures were not enough to stem the tide of sell-offs on Wall Street.

The greenback was up against the pound with GBP/USD slipping 0.13% to 1.6236.

The dollar gained ground against both the yen and the Swiss franc with USD/JPY advancing 0.48% to hit 79.26, and USD/CHF higher by 0.33% to hit 0.7661.

The greenback was mixed against its Canadian, Australian and New Zealand counterparts with USD/CAD down 0.03% to hit 0.9810, AUD/USD up 0.31% to hit 1.0432 and NZD/USD higher by 0.98% to hit 0.8281.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.07% at 75.48.

The U.S. Labor Department was to release it jobs report for July on Friday, as market expectations were for no change in unemployment which stood at 9.2%.

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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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