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Forex - Dollar erases losses after U.S. durable orders jump

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Forexpros - The U.S. dollar erased losses against almost all of its major counterparts on Wednesday, after U.S. government data showing an unexpected jump in orders for durable goods boosted demand for the greenback.

During U.S. morning trade, the greenback erased losses against the euro, with EUR/USD shedding 0.20% to hit 1.4411.

Earlier in the day, official data showed that euro zone industrial orders fell unexpectedly in June, posting the sharpest monthly fall since September 2010.

A separate report showed that the Ifo Institute's index of German business climate fell to a 14-month low this month.

The greenback rose sharply against the pound, with GBP/USD falling 0.70% to hit 1.6377.

The greenback also erased losses against both the yen and the Swiss franc, with USD/JPY easing up 0.15% to hit 76.76 and USD/CHF rising 0.18% to hit 0.7936.

Earlier in the day, Japan unveiled a two-pronged approach aimed at curbing the appreciation of the yen, creating a new USD100 billion credit line to promote foreign investment and imposing new rules on companies' foreign exchange holdings.

The initiative disappointed investors as it focused on strategies to cope with persistent yen strength and reduced the risk of further intervention to weaken the yen.

The greenback remained higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.08% to hit 0.9880, AUD/USD shedding 0.39% to hit 1.0484 and NZD/USD dropping 0.81% to hit 0.8291.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, climbed 0.28% to hit 74.08.

The Commerce Department said earlier that core durable goods orders rose by 0.7% in July, confounding expectations for a 0.4% decline.

Durable goods orders, which include transportation items, jumped by a seasonally adjusted 4.0% in July, doubling expectations for a 2.0% gain.

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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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