Forex - Dollar modestly higher as investors eye E.Z. plans

Forexpros - The U.S. dollar was modestly higher against its most of its major counterparts on Monday, amid guarded hopes over the unveiling of fresh measures to contain the debt crisis in the euro zone.

During European morning trade, the greenback was up against the euro, with EUR/USD shedding 0.29% to hit 1.3841.

The single currency was supported after G-20 finance ministers and central bankers endorsed on Sunday parts of an emerging plan to avoid a Greek default, recapitalize European banks and enhance the euro zone's bailout fund.

The next European Union summit on October 23 was set as the deadline for the new plan to be delivered.

The greenback was also up against the pound, with GBP/USD slipping 0.28% to hit 1.5775.
Earlier Monday, a report showed that house price inflation in the U.K. rose to 2.8% in October, from a 0.7% increase the previous month.

Meanwhile, the greenback was higher against the yen and the Swiss franc with USD/JPY edging up 0.06% to hit 77.26 and USD/CHF rising 0.19% to hit 0.8933.

In Japan, the government downgraded its outlook for the economy for the first time in six months earlier, amid concerns over the impact of the persistently strong yen on the nation's exporters.

The greenback was down against its Canadian counterpart, but higher against its Australian and New Zealand cousins, with USD/CAD falling 0.09% to hit 1.0088, AUD/USD shedding 0.22% to hit 1.0318 and NZD/USD declining 0.19% to hit 0.8038.

Earlier in the day, official data showed that Australian new motor vehicle sales slipped 1.5% in September, easing off a 15-month high hit the previous month.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.18%.

Later in the day, the U.S. was to publish official data on industrial production, as well as a report on manufacturing activity in New York state.


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