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Dollar broadly lower as Fed tapering talk weighs

Published 10/25/2013, 05:26 AM
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Investing.com - The dollar was broadly lower against the other major currencies on Friday, as U.S. employment data recently disappointed investors, fuelling further expectations for the Federal Reserve to hold back from tapering its stimulus program until next year.

During European morning trade, the dollar was lower against the yen, with USD/JPY falling 0.17% to 97.11.

The dollar remained under pressure after disappointing U.S. employment reports added to expectations that the Fed will delay tapering its stimulus program until next year amid concerns over the impact of the 16-day U.S. government shutdown on the economic recovery.

On Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits declined by 12,000 last week to a seasonally adjusted 350,000. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000 last week.

The report came after data earlier in the week showed that U.S. jobs growth slowed in September.

In Japan, official data showed that the Tokyo core consumer price index, which excludes fresh food, rose by an annualised rate of 0.3% in October, in line with expectations, after a 0.2% rise the previous month.

The euro was higher against the dollar, with EUR/USD adding 0.11% to 1.3816.

In a report, the Ifo Institute for Economic Research said Germany's business climate index fell to 107.4 in October, from a reading of 107.7 the previous month, confounding expectations for a rise to 108.0.

The dollar was steady against the pound and the Swiss franc, with GBP/USD inching up 0.05% to 1.6211, and with USD/CHF dipping 0.01% to hit 0.8923.

The pound found support after preliminary data showed that the U.K. gross domestic product rose 0.8% in the third quarter, in line with expectations and up from 0.7% in the previous quarter.

Elsewhere, the greenback rose against its Australian, New Zealand and Canadian counterparts but was still within range of recent highs, with AUD/USD shedding 0.34% to 0.9589, NZD/USD declining 0.68% to trade at 0.8297 and USD/CAD up 0.24% to 1.0445.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.08% to 79.19.

Later in the day, the U.S. was to produce data on durable goods orders, as well as revised data on consumer sentiment from the University of Michigan.



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