The dollar drops to its lowest level in two months on the back of the US employment data

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The dollar fell to its lowest level in more than two months today, Friday, after US jobs data for April came in far below expectations, dampening hopes that a strong economic recovery would lead to higher interest rates soon.
The Ministry of Labor said today in its closely watched report that jobs in non-agricultural sectors increased only 266,000 jobs last month, after increasing 770,000 in March.
Economists polled by Reuters had expected a job increase of about 978,000.
Against a basket of major currencies, the dollar index reached 90.561, down 0.34 percent, after falling to 90.338, the lowest since February 26, after the release of that data.
“The dollar is taking a hit this morning,” said Boris Schlossberg, managing director of exchange market strategy at BK Asset Management.
The euro rose 0.44 percent to $ 1.21140. The pound rose 0.3 percent to $ 1.3933.
“This is just one data report,” said Edward Moya, senior market analyst at Oanda in New York.
A more-than-expected acceleration in Chinese exports in April and import growth to a 10-year high pushed the yuan and Asian stock markets higher.
The yuan rose to its highest level in more than two months against the dollar and is heading for the longest period of weekly gains since September, driven by strong trade data and a weak dollar.
The MSCI emerging market currencies index today hit an all-time high of 1,732.79, buoyed by the yuan’s gains.
The Canadian dollar rose 0.27 percent to 1.2185 per dollar, after rising on Thursday to the highest level in more than three years.
The Australian dollar rose 0.19 percent to $ 0.77995, reversing losses earlier in the session.
In the cryptocurrency front, Ether rose 0.51 percent to $ 3,507.92, after reaching an all-time high on Thursday. Bitcoin rose 1.4 percent to $ 57,237.60.
(Reuters)





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