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Forex - Dollar up vs. rivals, boosted by US. CPI data, Greece woes

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Forex Pros - The U.S. dollar extended broad gains against its major counterparts on Wednesday, as concerns over Greek sovereign debt continued to curb risk appetite and after U.S. data showed that core inflation rose more-than-expected last month.

During early U.S. trade, the greenback was sharply higher against the euro, with EUR/USD tumbling 1.02% to hit 1.4293.

Ratings agency Moody's placed three of Frances largest lenders under review, pending possible downgrades due to their exposure to Greek debt.

The greenback was also stronger against the pound, with GBP/USD dropping 0.72% to hit 1.6251.

Earlier in the day, official data showed that the number of people in the U.K. claiming unemployment benefits increased sharply in May. A separate report showed that average earnings fell more-than-expected in April.

Elsewhere, the greenback was higher against the yen and the Swiss franc with USD/JPY climbing 0.18% to hit 80.63 and USD/CHF advancing 0.45% to hit 0.8491.

Earlier Wednesday, official data showed that Swiss producer price inflation declined unexpectedly in May.

In addition, the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.38% to hit 0.9713, AUD/USD sliding 0.20% to hit 1.0663 and NZD/USD falling 0.78% to hit 0.8116.

Reserve Bank of Australia Governor Glenn Stevens said earlier that policy makers will need to raise interest rates at some stage.

Separately, official data showed that retail sales in New Zealand rose in the first quarter, increasing for the first time in three quarters.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.87%.

Earlier Wednesday, the U.S. Labor Department said consumer prices rose by a seasonally adjusted 0.2% in May, after a 0.4% increase the previous month. Core inflation, which excludes volatile energy and food costs, rose by 0.3% in May, the biggest jump since July 2008, after rising by 0.2% in April.

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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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