U.S. Dollar Extends Rise Amid Lingering Greek Concerns
April 20 2015 - 10:42PM
RTTF2
The U.S. dollar continued to be stronger against the other major
currencies in the Asian session on Tuesday amid continued worries
over Greece that it may default on debts.
Greece is in an imminent danger of defaulting if bailout aid
fund from international creditors are not made available, even as
discussions over an extension remained inconclusive.
It is likely Greek banks may soon run out of collateral to
access European Central Bank refinancing unless Athens reaches a
deal over the release of another 7.2 billion euros in bailout funds
from the European Union. A meeting of euro-area finance ministers
will be held in Latvia on April 24.
Meanwhile, Greek finance minister Yanis Varoufakis is reported
to have warned of contagion if Greece leaves the eurozone. However,
European Central Bank President Mario Draghi brushed aside such
speculations, stating that the single eurozone currency is
irrevocable.
The comments of Federal Reserve Bank of New York President
William Dudley on the U.S. economy and monetary policy also
supported the currency.
Speaking at the Bloomberg Americas Monetary Policy Summit,
Dudely shed an optimistic outlook on U.S. economy that the nation's
economic data is likely to support a decision to raise interest
rate later this year.
Monday, the U.S. dollar was higher against its major rivals. The
U.S. dollar rose 0.58 percent against the euro, 0.36 percent
against the pound, 0.15 percent against the Swiss franc and 0.15
percent against the Yen.
In the Asian trading today, the U.S. dollar rose to a 6-day high
of 119.49 against the yen, a 5-day high of 1.4885 against the pound
and a 4-day high of 1.2261 against the Canadian dollar, from
yesterday's closing quotes of 119.12, 1.4903 and 1.2218,
respectively. If the greenback extends its uptrend, it is likely to
find resistance around 120.95 against the yen, 1.44 against the
pound and 1.26 against the loonie.
Against the Australia and the New Zealand dollars, the greenback
appreciated to 5-day highs of 0.7683 and 0.7633 from yesterday's
closing quotes of 0.7723 and 0.7654, respectively. The greenback
may now test resistance near 0.74 against the aussie and 0.73
against the kiwi.
The greenback edged up to 1.0724 against the euro and 0.9573
against the Swiss franc, from yesterday's closing quotes of 1.0736
and 0.9558, respectively. On the upside, 1.04 against the euro and
0.99 against the franc are seen as the next resistance levels for
the greenback.
Looking ahead, the final results of Japan leading and coincident
indexes for February is due to be released at 1:00 am ET.
In the European session, German ZEW economic sentiment index for
April is slated for release.
In the New York session, Canada wholesale sales data for
February is set to be published.
At 12:30 pm ET, European Central Bank Supervisory Board Chair
Daniele Nouy is expected to speak at the International Center for
Monetary and Banking Studies in Geneva.
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