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Dollar rises against major currencies after U.S. jobs data

Dollar rises against major currencies after U.S. jobs data

The dollar strengthened against most major currencies Friday even after a report showed that U.S. job growth slowed significantly in September.
The 12-nation euro bought $1.2595 in afternoon New York trading, down from $1.2690 in New York late Thursday.
The British pound slipped to $1.8705 from $1.8786. The sterling was still hurting from the Bank of England's decision Thursday to keep interest rates unchanged.
The dollar also rose against the Japanese currency, climbing to 118.98 from 117.61 yen.
The Labor Department reported Friday morning that employers added 51,000 jobs in last month, the fewest in almost a year and short of analysts' expectations of 120,000.
However, the unemployment rate dropped to 4.6 percent _ offering a mixed picture of the nation's jobs climate. Additionally, job gains for both July and August turned out to be bigger than previously estimated, helping to take some of the sting out of September's figure.
The data showed a "weaker headline number, but take into account the revisions and you don't really have a bad number," noted Divyang Shah, global strategist at IdeaGlobal in London, in an e-mail note in response to the figures.
Michael Woolfolk, a senior currency strategist at the Bank of New York, also pointed out the report showed earnings rising 4 percent year-over-year, the biggest jump in five years. The increase may grab the Federal Reserve's attention as it watches inflation, including wage inflation, to determine the future course of interest rates.
"I think the upward revisions and wage inflation take off the table any chance of a Fed rate cut," Woolfolk said. "That was an immediate dollar positive."
Rising interest rates have boosted the dollar for the past two years as the Fed sought to keep growth from fueling inflation.
Slowing growth has convinced most economists that it will keep interest rates unchanged for the rest of the year, and some even speculated the Fed may cut rates. However, Fed officials voiced about inflation pressures earlier this week.
In other New York trading, the dollar bought 1.2608 Swiss francs, up from 1.2519 late Friday, and 1.1263 Canadian dollars, up from 1.1256.


Updated : 2021-03-01 23:41 GMT+08:00