Dhaka, Bangladesh (BBN) – The US Dollar (USD) dropped across the board on Friday after data showed the US economy created far fewer jobs than expected, although persistent euro zone debt problems were likely to limit losses against the Euro (EUR). Labor Department data showed U.S.
Non-farm payrolls rose 39,000 last month, much weaker than expectations for 140,000 new jobs. Also, the unemployment rate increased to 9.8 percent, according to reports.
The USD on Monday recouped some ground lost from a renewed focus on U.S. quantitative easing, and was helped by short covering, while the EUR fell ahead of a meeting of European finance ministers.
The greenback pulled up off a three-week low against the Japanese Yen (JPY) and two weeks lows against the EUR set on Friday. The EUR won a slight reprieve on Tuesday before surrendering most of its gains against the USD as US Treasury yields jumped amid concerns over a proposed government extension of tax cuts, with weakness in the single currency expected to continue as structural weaknesses in the euro zone persisted.
The USD rose the most against the JPY in nearly three months on Tuesday after a proposed extension of U.S. tax cuts triggered higher Treasury yields. The USD rose against the JPY on Wednesday also and looked poised to extend gains.
BBN/SI/AD-12Dec10-1:50 am (BST)
