The dollar rallied against the euro on Wednesday after a senior European
Central Bank official said the bank may adjust interest rates if new
economic data warrants a rate cut.
During U.S. morning trade, the dollar extended gains against the euro, with EUR/USD tumbling 1.02% to 1.3040.
The euro weakened broadly after ECB Governing Council member Jens Weidmann said the bank could cut interest rates if economic and inflation data indicated that it was warranted.
The comments came in an interview in the Wall Street Journal ahead of a weekend meeting of the International Monetary Fund.
On Tuesday, the IMF trimmed its 2013 forecast for global growth but said continued monetary stimulus by the Federal Reserve and the Bank of Japan was expected to continue to support growth in the U.S. and Japan, while the euro zone still posed the greatest threat to a recovery in the global economy.
The dollar was slightly higher against the yen, with USD/JPY easing up 0.16% to 97.70, down from session highs of 98.44.
Investors were looking ahead to a meeting of finance ministers and central bank heads from the Group of 20 nations on Thursday and Friday, amid speculation over whether Japan will face criticism over the Bank of Japan’s aggressive easing.
The dollar rose to more than one-week highs against the pound, with GBP/USD dropping 0.93% to 1.5219.
Sterling fell against the dollar after official data showed the U.K. unemployment rate unexpectedly rose to 7.9% last month, from 7.8% in February. Analysts had expected the unemployment rate to remain unchanged.
Average U.K. earnings rose by a seasonally adjusted 0.8% year-on-year in the three months to February, below expectations for a 1.2% increase.
The number of people seeking unemployment benefits fell by a seasonally adjusted 7,000 in March, compared to expectations for an increase of 500.
Meanwhile, the minutes of the Bank of England’s April meeting showed that policymakers remained divided over more easing.
The dollar extended strong gains against the Swiss franc, with USD/CHF advancing 0.94% to 0.9312.
The greenback was broadly stronger against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.56% to 1.0268, AUD/USD down 0.75% to 1.0314 and NZD/USD losing 0.48% to trade at 0.8452.
The Canadian dollar hit session lows against the greenback after the Bank of Canada left rates on hold at 1.0%, but cut its outlook for economic growth following its policy-setting meeting.
The BoC trimmed its forecast for growth in 2013 to 1.5% from 2.0% in its January monetary policy report and cut its 2014 forecast to 2.7% from 2.8%.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.99% to a seven-day high of 82.69.
The Federal Reserve was to produce its beige book later in the trading day.
During U.S. morning trade, the dollar extended gains against the euro, with EUR/USD tumbling 1.02% to 1.3040.
The euro weakened broadly after ECB Governing Council member Jens Weidmann said the bank could cut interest rates if economic and inflation data indicated that it was warranted.
The comments came in an interview in the Wall Street Journal ahead of a weekend meeting of the International Monetary Fund.
On Tuesday, the IMF trimmed its 2013 forecast for global growth but said continued monetary stimulus by the Federal Reserve and the Bank of Japan was expected to continue to support growth in the U.S. and Japan, while the euro zone still posed the greatest threat to a recovery in the global economy.
The dollar was slightly higher against the yen, with USD/JPY easing up 0.16% to 97.70, down from session highs of 98.44.
Investors were looking ahead to a meeting of finance ministers and central bank heads from the Group of 20 nations on Thursday and Friday, amid speculation over whether Japan will face criticism over the Bank of Japan’s aggressive easing.
The dollar rose to more than one-week highs against the pound, with GBP/USD dropping 0.93% to 1.5219.
Sterling fell against the dollar after official data showed the U.K. unemployment rate unexpectedly rose to 7.9% last month, from 7.8% in February. Analysts had expected the unemployment rate to remain unchanged.
Average U.K. earnings rose by a seasonally adjusted 0.8% year-on-year in the three months to February, below expectations for a 1.2% increase.
The number of people seeking unemployment benefits fell by a seasonally adjusted 7,000 in March, compared to expectations for an increase of 500.
Meanwhile, the minutes of the Bank of England’s April meeting showed that policymakers remained divided over more easing.
The dollar extended strong gains against the Swiss franc, with USD/CHF advancing 0.94% to 0.9312.
The greenback was broadly stronger against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.56% to 1.0268, AUD/USD down 0.75% to 1.0314 and NZD/USD losing 0.48% to trade at 0.8452.
The Canadian dollar hit session lows against the greenback after the Bank of Canada left rates on hold at 1.0%, but cut its outlook for economic growth following its policy-setting meeting.
The BoC trimmed its forecast for growth in 2013 to 1.5% from 2.0% in its January monetary policy report and cut its 2014 forecast to 2.7% from 2.8%.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.99% to a seven-day high of 82.69.
The Federal Reserve was to produce its beige book later in the trading day.
