FX round-up: Dollar firms on eve of EU summit

Date: Thursday 28 Jun 2012

The dollar made headway against major currencies on Wednesday a day ahead of a closely watched European Union summit in Brussels.

However there is little hope that leaders will agree on new measures to resolve the region's debt crisis with Germany and France at odds with how to move forward with the debt crisis.

The dollar index, which measures the greenback against a basket of six others, climbed to 82.585 from 82.365 on Tuesday.

The dollar was boosted by a report that showed orders for durable goods rose a stronger than expected 1.1% in May. Markets also digested upbeat house sale data. Pending home sales for June grew 5.9% month-on-month, significantly ahead of the 1% expected by economists.

The euro fell to $1.2466, off 0.2% on the day after trading at a low of $1.2451 earlier in the session.

Against the Japanese yen, the dollar fetched ¥79.75 from ¥79.47 on Tuesday while the euro was up 0.2% at ¥99.42. The yen benefited from safe have flows but jitters remain over the outlook of Japan's Prime Minister Yoshihiko Noda after controversial plans for an increase in tax to reduce public debt.

Sterling remained little changed against the euro on Wednesday as many sat on the sidelines ahead of the EU summit.




CJ

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