The euro held its ground against major rivals on Wednesday, as traders weighed a flurry of news from Europe, where conflicting reports on the size of a regional bailout fund have emerged in recent days. Yesterday’s Guardian report that Germany and France agreed to a 2 trillion euro package was “totally false,” according to a
The dollar turned lower on Tuesday, giving back gains from the previous session after government figures showed U.S. wholesale prices rose in September more than forecast. The buck then accelerated to the downside on a Guardian report saying that France and Germany have reached agreement to boost the eurozone’s rescue fund to 2 trillion euros.
The dollar dropped to a monthly low versus the euro and sterling on Friday, stung by renewed hopes that coordinated action on Europe’s sovereign debt crisis will fuel a more robust global economy recovery. With risk appetite and stocks on the rise, the safe haven dollar remained under pressure versus the riskier counterparts, including commodities-backed
The dollar stormed back from early losses versus the euro on Friday, after ratings agency Fitch raised red flags about Italy’s ability get its fiscal affairs in order. Hours after Moody’s downgraded numerous banks in the U.K. and Portugal, Fitch downgraded Italy’s sovereign credit rating and says the outlook on its long-term ratings is negative.
The dollar gave back some of its strong recent gains versus the euro on Thursday, falling from an 8-month peak after stocks rebounded on comments from Federal Reserve Chairman Ben Bernanke. Risk aversion has boosted the dollar in recent weeks, but traders breathed a sigh of relief after Bernanke said that a new lending program
