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Dollar steady as strong U.S. jobs report supports

Published 11/11/2013, 04:22 AM
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Investing.com - The dollar was steady against the other major currencies on Monday consolidating gains after a broad based rally on Friday when a strong U.S. jobs report for October bolstered expectations that the Federal Reserve could start to taper stimulus as soon as next month.

During European morning trade, the euro edged higher against the dollar, with EUR/USD inching up 0.10% to 1.3376 from Friday’s close of 1.3364, still holding above the seven week low of 1.3294 hit on Thursday.

The U.S. economy added 204,000 jobs in October, the Department of Labor said Friday, significantly higher than the 125,000 expected by economists.

The upbeat data indicated that the U.S. economy shrugged off the impact of the government shutdown and added to expectations that the Fed may start winding down its USD85 billion-a-month asset purchase program before the end of the year.

The euro remained under pressure after the European Central Bank unexpectedly cut its benchmark interest rate from 0.5% to 0.25% on Thursday and indicated that further rate cuts are still possible.

The dollar eased against the yen, but remained close to last Thursday’s seven week high of 99.40, with USD/JPY dipping 0.03% to 99.05.

Elsewhere, the dollar was almost unchanged against the pound and the Swiss franc, with GBP/USD inching up 0.03% to 1.6017 and USD/CHF edging down 0.07% to 0.9209.

The greenback was little changed against the Australian dollar, with AUD/USD dipping 0.06% to 0.9375.

Australia’s dollar remained supported after data released on Monday showed that the nation’s home loans rose 4.4% in September, exceeding expectations for a 4% increase.

The greenback was slipped lower against the New Zealand and Canadian dollars, with NZD/USD rising 0.18% to 0.8257 and USD/CAD slipping 0.05% to 1.0472.

The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched down 0.06% to 81.24.



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