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Forex - Dollar climbs as riskier currencies suffer

Published 06/06/2013, 09:12 PM
Updated 06/06/2013, 09:13 PM
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Investing.com - The U.S. dollar traded higher against nearly all of its major rivals during Friday’s Asian session as traders looked to suppress a suddenly strong yen while passing on riskier currencies.

In Asian trading Friday, EUR/USD inched down 0.02% to 1.3244 after the European Central Bank left its benchmark interest rate unchanged at 0.5% and left deposit rates at zero. ECB President Mario Draghi said the euro zone economy should contract by 0.6% in 2013 compared with a 0.5% contraction forecast made in March.

GBP/USD nudged down 0.02% to 1.5601 after the Bank of England decided to leave interest rates unchanged while not adding to its quantitative easing program. The meeting was the last for Mervyn A. King who be replaced by Mark J. Carney, head of the Bank of Canada. Rates in the U.K. are 0.5%.

USD/JPY inched up 0.04% to 97.04. During Thursday’s U.S. session, the pair plunged 2.1% and traded below 96.

In economic news out Thursday, the U.S. Labor Department said first-time claims for jobless benefits fell by 11,000 to 346,000 last week. Economists expected new claims to fall to 345,000.

Later Friday, the U.S. delivers its non-farm payroll report for May with estimates ranging from the addition of 135,000 jobs to as high as 180,000. A number that is too low could be perceived by financial markets because that could mean the Federal Reserve will not bring an end to quantitative easing anytime soon.

USD/CHF nudged up 0.01% to 0.9295 while USD/CAD rose 0.10% to 1.0275 as oil prices cooled a bit after an impressive showing during Thursday’s U.S. session.

AUD/USD plunged 0.52% to 0.9554 after BlackRock said a raft of U.S. hedge fund managers are lining up to short the Aussie.

NZD/USD dropped 0.41% to 0.8003 while the U.S. Dollar Index was flat at 81.54.


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