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Forex - Dollar broadly lower vs. rivals as risk appetite recovers

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Forexpros - The U.S. dollar was broadly lower against its major counterparts on Monday, as demand for higher yielding assets was boosted after Federal Reserve Chairman Ben Bernanke said the bank was prepared to stimulate growth if necessary.

During European morning trade, the greenback was down against the euro, with EUR/USD easing up 0.09% to hit 1.4512.

Speaking at the Fed's annual gathering on Friday, Bernanke did not indicate that the central bank intended to take immediate action to bolster the economic growth, but did not outrule the use of additional monetary stimulus if necessary.

The greenback was also lower against the pound, with GBP/USD rising 0.10% to hit 1.6385.

Earlier Monday, U.K. property data firm Hometrack said house prices fell 0.1% this month, leaving them 3.7% below the August 2010 level.

Elsewhere, the greenback was lower against the yen but strengthened against the Swiss franc, with USD/JPY slipping 0.11% to hit 76.57 and USD/CHF surging 0.79% to hit 0.8125.

The franc weakened after Swiss lender UBS said Friday that it may begin to charge client banks a fee on deposits, in an attempt to discourage hoarding of the safe-haven currency because of financial market volatility.

Elsewhere, in Japan, Finance Minister Yoshihiko Noda was elected head of the country's ruling DPJ party; all but guaranteeing that he will become the country's next prime minister.

Meanwhile, the greenback was lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD shedding 0.42% to hit 0.9775, AUD/USD gaining 0.40% to hit 1.0614 and NZD/USD adding 0.53% to hit 0.8441.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.10% to hit 73.70.

Later in the day, the U.S. was to release industry data on pending home sales.

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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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