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Dollar steady close to highs as U.S. jobs data supports

Published 03/11/2013, 05:46 AM
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Investing.com - The dollar was supported close to the highest level in three months against the euro and multi-year highs against the yen and the pound on Monday as Friday’s robust U.S. jobs data fuelled hopes that the U.S. economic recovery is gathering momentum.

During European morning trade, the dollar was almost unchanged near three-month highs against the euro, with EUR/USD inching up 0.07% to 1.3005.

The U.S. economy added 236,000 jobs last month official data on Friday showed, well above expectations for an increase of 160,000. The unemployment rate ticked down to 7.7%, the lowest level since December 2008, from 7.9% in January.

The robust data added to speculation over an earlier-than-expected end to the Federal Reserve’s easing program, bolstering demand for the dollar.

The dollar was close to two-and-a-half year highs against the pound, with GBP/USD edging up 0.07% to 1.4923 as prospects for a triple-dip recession and more easing by the Bank of England continued to pin down sterling.

Elsewhere, the dollar was trading close to its highest level in three-and-a-half years against the yen, with USD/JPY edging up 0.07% to 96.10 as expectations for further easing by the Bank of Japan weighed on the yen.

Earlier Monday, incoming BoJ Governor Haruhiko Kuroda said he would do “whatever is needed” to beat deflation and achieve the 2.0% inflation target adopted by the central bank in January.

The greenback slipped lower against the Swiss franc with USD/CHF sliding 0.15% to 0.9503.

In Switzerland, official data showed that retail sales rose 1.9% in January, below expectations for a 2.8% increase.

The greenback was little changed against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.05% to 1.0281, AUD/USD inching down 0.01% to 1.0234 and NZD/USD losing 0.07% to trade at 0.8207.

Sentiment on the commodity linked currencies was hit by concerns over a possible slowdown in the world’s second-largest economy after data over the weekend showed that inflation in China hit a 10-month high in February, while industrial output and retail sales slowed.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.02% to 82.99.



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