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1st LD Writethru: Dollar slips against euro on banking union expectation

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(GlobalPost/GlobalPost)

1st LD Writethru: Dollar slips against euro on banking union expectation

NEW YORK, Dec. 10 (Xinhua) -- The U.S. dollar retreated against major currencies Tuesday and fell to a six-week low against the euro on expectation for a banking union in the euro zone.

The U.S. dollar fell for a sixth day versus the euro, and the U. S. dollar index, which tracks the greenback versus the six major currencies, was last traded around 79.98, down by 0.2 percent.

European Union finance ministers, who are meeting in Brussels, are expected to create a banking union to close down failed banks in order to prevent banking crisis.

Moreover, the European Central Bank refrained from further monetary stimulus after a policy meeting last week, which also supported the euro.

Recent data showed U.S. economy has been on the course of recovery, but many analysts still believe the Federal Reserve need to see more evidence of economic improvements and it would probably start to taper bond purchases in March 2014, which could be a reason why the U.S. dollar has been weak in the last few trading days.

The next U.S. Federal Reserve's policy meeting will be held on Dec. 17-18.

In late New York trading, the euro rose to 1.3763 dollars from 1.3739 dollars in the previous session, and the British pound increased to 1.6446 dollars from 1.6427 dollars. The Australian dollar climbed to 0.9156 U.S. dollar from 0.9107 U.S. dollar.

The U.S. dollar bought 102.77 Japanese yen, lower than 103.22 yen of the previous session. The U.S. dollar moved down to 0.8872 Swiss franc from 0.8905 Swiss franc and went down to 1.0610 Canadian dollars from 1.0638 Canadian dollars.

http://www.globalpost.com/dispatch/news/xinhua-news-agency/131210/1st-ld-writethru-dollar-slips-against-euro-banking-union-exp