The US dollar advanced against most of its major rivals in early New York deals Monday on increasing safe-haven bets as weekend summit of the G8 leading industrialized nations failed to announce necessary steps to lift the encircling gloom over Greece's debt woes.
Over the weekend, leaders of the G8 nations that they support Greece remaining in the Eurozone, while welcoming the ongoing discussion in Europe on how to generate growth alongside a firm commitment on fiscal consolidation.
Eurozone leaders are yet to reach consensus on how to solve the Greece crisis. The country will go to polls on June 17 as no party gained majority and negotiations to form a coalition government failed.
Amid fears of a possible Greece exit, another struggling nation Spain reportedly said that its banks do not need European funding. Last week, Moody's downgraded 16 Spanish banks, citing rising loan defaults and restricted funding access.
Spain revised its budget deficit for 2011 to 8.9 percent of gross domestic product from 8.5 percent, as individual regions raised their estimates.
The dollar touched the day's peak against the pound, hitting as high as 1.5783 before holding steady around 8:30 am ET. If the dollar extends gains, it may re-visit last week's fresh 2-month high of 1.5735.
House prices in the U.K. remained unchanged in May as the expiration of stamp duty exemption for first time home buyers and the eurozone crisis damped demand, a survey by Rightmove revealed.
Separately, a survey by Markit Economics showed that household finances in the U.K. deteriorated at the fastest pace in four months in May.
The US dollar reversed its early Asian session losses against the currencies of Europe and Switzerland in subsequent trading hours.
The greenback is presently quoted at 0.9428 against the Swiss franc and 1.2743 against the euro, up from Asian session's 6-day lows of 0.9377 and 1.2814, respectively.
Near-term resistance levels for the US currency are seen at 0.9450 against the Swiss franc and 1.2715 against the euro.
Switzerland's consumer confidence improved further between January and April, a survey by the State Secretariat for Economic Affairs (SECO) showed today.
The consumer confidence index rose to -8 in January-April from -19 in three months to January. The latest result was better than economists' expectations for an improvement to -15.
Eurozone construction output rebounded sharply in March, the latest figures from Eurostat revealed today. Construction output jumped 12.4 percent month-on-month in March, recovering from a 10.4 percent slump in February and 0.5 percent fall in January.
Year-on-year, construction output decreased 3.8 percent. Building construction fell 3.4 percent and civil engineering decreased 4.9 percent.
The dollar that rose as high as 79.48 against the yen in early deals Monday consolidated around the 79.25/30 area in New York morning.
Japan's leading index improved in March, but at a slower than initially estimated pace, final data published by the Cabinet Office revealed today.
The leading index rose to 96.4 in March from 96.1 in February. The reading for March was revised down from 96.6. The index signals the direction of the economy in the months ahead.
Meanwhile, the coincident index, that measures the current economic activity, climbed to 96.7, up from last month's 95.2 and the initial estimate of 96.5.
by RTT Staff Writer
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