FOREX-Dollar advances across the board on U.S. jobs data

Fri Jul 5, 2013 9:30am EDT

Related Topics

* U.S. economy adds 195,000 jobs in June, boosting dollar
    * Dollar index hits a nearly three-year high

    By Gertrude Chavez-Dreyfuss
    NEW YORK, July 5 (Reuters) - The dollar gained broadly on
Friday, hitting five-week highs against the yen and a six-week
peak versus the euro, as better-than-expected U.S. jobs data
bolstered expectations that the Federal Reserve would scale back
its asset purchases sooner than expected.
    With the report, analysts expect the Fed to start winding
down its quantitative easing program as early as September.
    Almost all the components of the U.S. nonfarm payrolls
report for June were positive for the economy, suggesting that
the labor market was stabilizing. Employers added 195,000 jobs,
compared with forecasts of 165,000, while the unemployment rate
was steady at 7.6 percent as more people entered the workforce.
    What's more, the U.S. government revised payrolls for April
and May to show 70,000 more jobs created than previously
reported. 
    "The data is strong enough that it validates the ECB's
(European Central Bank) and BOE's (Bank of England) attempts to
try to distinguish their policy actions from those in the U.S.,"
said Alan Ruskin, head of G10 FX strategy at Deutsche Bank in
New York.
    Both the ECB and BoE pledged on Thursday to keep monetary
policy accommodative for an extended period. 
    The U.S. jobs report was also consistent with the
medium-term broad-based stronger U.S. dollar trend, Ruskin
added.
    The euro fell as low as $1.2805 against the dollar,
its weakest since May 20. It was last at $1.2823, down 0.7
percent.
    Against the yen, the dollar touched a peak of 101.13
yen, its highest since May 31. It was last at 100.87, up 0.8
percent.
    The greenback's gains pushed the dollar index to a high of
84.530, a nearly three-year peak. By early New York
trading, the dollar index was up 1.4 percent at 84.387.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.