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Dollar Extends Gains Against Major Counterparts
(RTTNews) - The U.S. dollar firmed against is major counterparts on Wednesday, with traders reacting to data showing a stronger than expected growth in U.S. private sector employment in July.
Fitch's downgrade of the U.S.' sovereign credit rating hurt risk sentiment and prompted traders to seek the safe-haven greenback.
Fitch lowered the U.S. debt rating to 'AA+' from 'AAA', pointing to a steady deterioration in standards of governance.
The rating agency said the downgrade reflected the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the repeated debt limit impasses.
Data from payroll processor ADP showed that private sector employment rose by 324,000 jobs in July, after surging by a downwardly revised 455,000 jobs in June.
Private sector employment was expected to increase by 189,000 jobs, compared to the spike of 497,000 jobs originally reported for the previous month.
The dollar index climbed to 102.78 around mid morning, and at 102.64, remains firmly above the flat line, gaining about 0.33%.
Against the Euro, the dollar strengthened to 1.0939, gaining from 1.0984. The dollar is up at 1.2709 against Pound Sterling, firming from 1.2776.
Against the Japanese currency, the dollar is down marginally at 143.36 yen. The dollar is up sharply against the Aussie at 0.6538, and is up against Swiss franc, fetching CHF 0.8778 a unit. With oil prices falling sharply, the Loonie has weakened to 1.3354 against the dollar.
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