News Column

Dollar Barely Budges Despite Upbeat US Jobs, ECB Action

June 6, 2014

BRUSSELS (Alliance News) - The dollar was little changed after another choppy session on Friday amid a relatively upbeat US jobs report.

An eventful week including unprecedented easing measures from the European Central Bank saw the dollar touch a 4-month peak against the euro before leveling off yesterday afternoon.

The buck slumped to USD1.3680 before finding its footing at USD1.3820 today. Earlier in the week, the buck briefly touched USD1.35, its highest since February.

On Friday, the ECB reduced its main lending rate by 0.10 %age points to 0.15%. Policy makers also voted to charge commercial banks interest for holding money in the ECB in an effort to stimulate bank lending.

The dollar failed to trim its weekly losses versus the sterling, with the pair holding at USD1.68 for most of the day.

Modest gains took the dollar to Y102.60 versus the yen, up from near Y102 overnight. The buck moved this week away from a recent 4-month low of Y101.

In economic news from the US, data released by the Labor Department showed non-farm payroll employment to have increased by 217,000 jobs in May, after jumping 282,000 jobs in April. Economists had been expecting employment to rise by about 215,000 jobs in the month.

The data showed unemployment rate was steady at 6.3% in May. Economists expected unemployment rate to edge up to 6.4%.

German exports increased notably in April, following declines in the previous two months, figures from Destatis showed. Total exports climbed a calender-and-seasonally adjusted 3.0% monthly in April, following a 1.8% decline in March.

Meanwhile, the French trade deficit narrowed unexpectedly in April due to a notable decline in imports, the customs office said.

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Source: Alliance News

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