Alexa
  • Directory of Taiwan

Euro rockets through US$1.37 on depressing U.S. jobless figures

Euro rockets through US$1.37 on depressing U.S. jobless figures

The euro roared past US$1.37 in trading Friday against the dollar after U.S. unemployment hit a six-month high, building a solid crest after days of back-and-forth movement.
The 13-nation euro rose to a high of US$1.3726 before settling back at US$1.3716 in mid-afternoon European trading, still higher than the US$1.3693 it bought in late New York trading the night before.
The British pound was slightly higher in trading, buying US$2.0379 in trading _ edging higher from the US$2.0357 it bought late Thursday night in New York. The dollar was down slightly to 118.97 Japanese yen from 119.10 yen the night before.
The euro surged after a U.S. Labor Department report Friday showed that hiring cooled off in July, pushing the nation's unemployment up to 4.6 percent.
The fresh snapshot of employment conditions around the country also showed that new job creation slowed. Employers increased payrolls by 92,000 last month, the fewest add-ons in a single month since February.
U.S. economic data are being watched for hints about the Federal Reserve's future course on interest rates. The Fed has kept rates on hold for the past year even as they have been rising in Europe and the United Kingdom.
The ECB and Bank of England both kept their interest rates unchanged at 4 percent and 5.75 percent, respectively, on Thursday, though both are expected to raise it later this year.
Higher interest rates, a weapon against inflation, can support a currency by offering investors better returns on investments denominated in that currency.