Optimism about a Rescue Plan Cyprus and The Continued Decline of The Dollar Against Its Counterparts

The U.S. dollar proved against other major currencies on Tuesday, after optimism after reaching agreement on a rescue plan Cyprus, which continued to support sentiment, although Eurogroup Chairman Groan Dgsl Blom’s Statements which made limited gains.

During European morning trade, the dollar fell against the euro with EUR / USD shedding 0.19% to hit 1.2877.
Euro came under broad selling pressure on Monday, after the President of the Eurogroup, Groan Dgsl Blom said that the rescue program agreed to save Cyprus represents a new paradigm to solve banking problems in the euro zone and other countries that may have to restructure their banking sectors.

Later commenting on his comments, stated that Cyprus was a special case with special challenges.

Monday morning, The Euro Zone Finance Ministers concluded Cyprus bailout plan of 10 billion euros to Cyprus, which will see the closure of the second largest lender Laiki and inflicting heavy losses on deposits amounting to more than 100. Thousand billion euros

The dollar was steady against the pound, with GBP / USD gaining 0.02% to 1.5182 record.

Elsewhere, the greenback was up against the yen and proved against the Swiss franc, with USD / JPY shedding 0.06% to hit at 94.10, with proven USD / CHF shedding 0.03% to hit 0.9483.

The yen remained under pressure after it confirmed the new governor of the Bank of Japan, Haruhiko Kuroda, for his commitment to aggressive monetary easing to achieve the inflation target of 2%.

Kuroda said that the central bank would discuss with the Bank of Japan buying more bonds at longer maturities, which buys government debt in three years or less through its asset purchase program of $ 76 billion.

But investors remained cautious after what the president the euro group, Groan Dgsl Blom said that Rescue Program Agreed to save Cyprus represents a new paradigm to solve banking problems in the Euro Zone and other countries that may have to restructure their banking sectors.

The dollar steadied down against its Canadian, Australian and New Zealand counterparts, with USD / CAD shedding 0.07% to hit 1.0206, and AUD / USD rate of 0.11% for 1.0475 record
Rose NZD / USD gaining 0.01% to hit 0.8350.

The Australian dollar rose earlier amid speculation about interest rate cuts by the Bank e RBA when Australia's central bank governor Glenn Stevens refused to comment on monetary policy and to answer a question on fiscal policy in the securities and investments in Australian Annual Forum.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.13% to hit 82.95.

Later in the day, the United States will publish government reports on durable goods orders and new home sales as well as a report on consumer confidence.


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