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Forex - Dollar gains broadly amid Greece contagion fears

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Forex Pros - The U.S. dollar was broadly higher against its major counterparts on Thursday, amid concerns that Greece's sovereign debt crisis will spread to other peripheral euro zone member states.

During European afternoon trade, the greenback was up against the euro, with EUR/USD shedding 0.53% to hit 1.4103.

Earlier in the day, European Central Bank Governing Council member Nout Wellink said that the European bailout fund should be doubled if private investors are to contribute to additional refinancing aid for Greece.

The greenback was also up against the pound, with GBP/USD dropping 0.56% to hit 1.6102.

Official data released earlier showed that retail sales in the U.K. fell significantly more-than-expected in May.

Meanwhile, the greenback was down against the yen and the Swiss franc with USD/JPY shedding 0.26% to hit 80.73 and USD/CHF falling 0.43% to hit 0.8490.

Earlier Thursday, the Swiss National Bank left its benchmark interest rate unchanged at 0.25%, in a widely expected decision. Elsewhere, official data showed that Swiss industrial production fell significantly more-than-expected in the first quarter.

Elsewhere, the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD surging 0.77% to hit 0.9867, AUD/USD falling 0.62% to hit 1.0509 and NZD/USD tumbling 0.89% to hit 0.7993.

New Zealand's Finance Minister Bill English said earlier that the local currency's strength was hurting the economy and keeping interest rates low was better for growth.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.42%.

Later in the day, the U.S. was to publish a weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity.

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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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