Dollar drops as jobless rate climbs

Posted On: February 01, 2013

The world's reserve currency lost value against the common currency of the European Union on Friday, dropping to its lowest value since November 2011, according to Bloomberg.

An unanticipated advance in the jobless rate in the U.S. prompted conjecture about the continuation of economy-spurring measures like monetary stimulus, which pulls down the value of the currency on foreign exchange markets. Consequently, the greenback dropped to its lowest value in 14 months against the euro.

"It's really a better-than-expected number," managing director and head of foreign exchange Doug Borthwick with Chapdelaine FX in New York told the news source regarding the payrolls report on Friday. "This will be spun positively by the market."

The U.S. dollar hurtled to 30-month highs against the Japanese yen as speculation mounted about the central bank of the Pacific Rim nation preparing to implement additional easing to spur its economy, according to Reuters.

The U.S. Labor Department said the U.S. economy augmented payrolls by 157,000 during the month of January, pushing the jobless rate up slightly to 7.9 percent from 7.8 percent. The report also noted job growth from November and December was revised higher.
 

Category: Industry News

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