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Forex - Dollar under pressure vs. rivals as risk appetite recovers

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Forexpros - The broadly weaker U.S. dollar was down all of its major counterparts on Wednesday, as risk appetite recovered following the disappointing outcome of the previous day's Franco-German summit meeting.

During European afternoon trade, the greenback was down against the euro, with EUR/USD gaining 0.6% to hit 1.4494.

The euro found support amid speculation grew the European Central Bank was buying Italian and Spanish government debt, in an effort to ease pressure on the region's third and fourth largest economies.

The greenback was also lower against the pound, with GBP/USD climbing 0.37% to hit 1.6518.

The U.K. Office for National Statistics said earlier that the claimant count rose by a seasonally adjusted 37,100 in July, above expectations for an increase of 20,000.

Separately, minutes from the Bank of England's July policy-setting meeting showed that policy makers voted 9-0 to keep rates unchanged at a record low 0.5%.

Meanwhile, the greenback was down against the safe haven yen and Swiss franc, with USD/JPY falling 0.42% to hit 76.48 and USD/CHF dropping 1.36% to hit 0.7851.

The Swiss National Bank announced further measures to weaken the franc, but stopped short of pegging the currency to the euro or intervening directly in the currency market, as some had speculated in recent days.

Elsewhere, the greenback was lower against the risk-sensitive Australian, New Zealand and Canadian dollars, with AUD/USD climbing 0.92% to hit 1.0581, NZD/USD gaining 0.32% to hit 0.8389, while USD/CAD shed 0.44% to hit 0.9780.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.63% to hit 73.56, the lowest since May 5.

Later in the day, the U.S. was to publish official data on producer price inflation, as well as government data on crude oil stockpiles.

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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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