In early European deals on Monday, the U.S. dollar pared its Asian session gains against the European majors as an advance in European stocks prompted investors to move away from safe-haven currencies. The dollar thus eased from a new multi-month high against the pound.
Meanwhile, the dollar remained higher against the yen as the latter weakened across the board.
Asian and European stocks rose today, boosted by mining stocks after a massive earthquake in Chile, the world’s top copper producer, and on signs that Greece’s debt crisis could be easing.
In Asia, Japan’s Nikkei 225 index rose 0.45%, Hong Kong’s Hang Seng climbed 2.17%, China’s Shangai composite index soared 1.2%, Australia’s S&P 200 index advanced 1.05% and the All Ordinaries index was 0.9% higher.
In Europe, Germany’s DAX edged up 1.17%, France’s CAC 40 index climbed 1.23% and UK’s FTSE 100 index rose 0.45%.
At 4:15 am ET Monday, the dollar touched 1.3655 per euro and 1.0722 against the franc, down from 1.3587 and 1.0775, hit respectively at 1:50 am ET. As of now, the dollar is worth 1.364 per euro and 1.073 against the franc. The euro-dollar pair closed trading at 1.3634 and the dollar-franc pair at 1.0733 on Friday.
Upbeat manufacturing PMI reports from both the Euro-zone and Switzerland released today boosted the euro and the franc, respectively in early European deals.
The dollar that climbed to a new multi-month high of 1.5099 against the pound at 1:50 am ET Monday eased thereafter. Currently, the dollar is worth 1.516 per pound, compared to last week’s close of 1.525.
The U.K. currency was under selling pressure in Asian deals on concerns about hung parliament. But the pound recouped some of its losses in early European trading on the back of higher equities.
The dollar strengthened against the yen in early deals on Monday. At present, the dollar-yen pair is worth 89.3, up from Friday’s close of 88.84.
Looking ahead, the Euro-zone unemployment report for January is due at 5:00 am ET.
The U.S. personal income and spending for January, ISM manufacturing index for February and the construction spending for January are expected to influence trading in the New York session.
