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Dollar turns broadly higher on upbeat U.S. jobs report

Published 12/06/2013, 08:57 AM
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Investing.com - The dollar turned broadly higher against the other major currencies on Friday, as the release of an upbeat U.S. jobs report fuelled further expectations for the Federal Reserve to begin scaling back its asset purchases in the coming months.

During European afternoon trade, USD/JPY rallied 1.02% to 102.84.

The greenback strengthened broadly after the Department of Labor said the U.S. economy added 203,000 jobs in November, exceeding expectations for a 180,000 increase, after a downwardly revised 200,000 rise the previous month.

In the private sector, 196,000 jobs were added last month, compared to expectations for a 180,000 rise, after an increase of 214,000 in October.

The report also said the U.S. unemployment rate fell to 7.0% in November, from 7.3% in October, beating expectations for a downtick to 7.2%.

Elsewhere, EUR/USD slipped 0.14% to 1.3647.

Earlier Friday, official data showed that German factory orders fell 2.2% in October, more than the expected 0.6% slip, after a downwardly revised 3.1% increase the previous month.

The pound was steady against the dollar, with GBP/USD easing 0.06% to 1.6326.

Industry data showed that house price inflation in the U.K. rose 1.1% in November, beating expectations for a 0.6% increase, after an upwardly revised 1.3% rise the previous month.

The dollar edged higher against the Swiss franc, with USD/CHF up 0.09% to 0.8975.

Official data earlier showed that Swiss consumer price inflation was flat last month, compared to expectations for a 0.2% fall, after a 0.1% downtick in October.

The greenback was broadly higher against the Australian, New Zealand and Canadian dollars, with AUD/USD shedding 0.28% to 0.9037, NZD/USD dropping 0.54% to 0.8175 and USD/CAD up 0.13% to 1.0669.

In Canada, official data showed that the economy added 21,600 jobs last month, blowing past expectations for a 12,000 rise, after an increase of 13,200 in October.

Canada's unemployment rate remained unchanged at 6.9% in November, compared to expectations for a rise to 7.0%.

The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.23% to 80.47.

Later in the day, the University of Michigan was to produce the preliminary reading of its consumer sentiment index.


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