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Forex - Dollar mixed in early Asian trade

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Forexpros - The U.S. dollar was mixed against its major counterparts in Asian trade Tuesday, following a mild turnaround for Wall Street shares and hopes of a vow of action from the Federal Reserve to stimulate the faltering U.S. economy.

In early Asian trade, the greenback was higher against the euro, with EUR/USD falling 0.01% to hit 1.4357.

Financial issues played center stage in Monday trade on Wall Street, with JPMorgan Chase falling 2.7% and Bank of America tumbling by 7.9%. U.S. bank issues continue to suffer as they are seen as most vulnerable to the European debt crisis.

By the end of the U.S. trading session, the Dow Jones Industrial Average closed up 0.34%, to close at 10,854.70, the Nasdaq Composite Index gained 0.15% to 2,345.38, and the S&P 500 eked out a 0.03% rise to 1,123.82.

Earlier Monday, Credit Suisse reduced its year-end target for the S&P 500 index to 1,100 from its previous forecast of 1,275.

The S&P 500 has lost 18% since hitting a three-year high on April 29. Weak manufacturing numbers, a drop in consumer confidence and persistent unemployment at above 9% have all contributed to a lack of confidence in the performance of U.S. equities.

Meanwhile, the greenback was down against the British pound, with GBP/USD adding 0.04% to 1.6462.

The dollar was higher against the Japanese yen but down against the Swiss franc with USD/JPY adding 0.06% to hit 76.84, and USD/CHF lower by 0.08% to hit 0.7896.

The greenback was higher against its Canadian, Australian and New Zealand counterparts with USD/CAD up 0.01% to hit 0.9905, AUD/USD lower by 0.08% to hit 1.0400, and NZD/USD falling 0.11% to hit 0.8230.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.03% at 74.25.

The U.S. Federal Reserve was scheduled to hold its annual meeting in Jackson Hole, Wyoming later this week, where market players were looking for possible signs of further quantitative easing from the central bank.

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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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