The buck gave back its strong early gains against the yen and stayed near this week’s 4-month lows against the euro on Friday, despite another encouraging report on the U.S. jobs market.
Employment saw a significant increase in the month of February, according to a report from the Department of Labor. The report also showed an unexpected drop in the unemployment rate.
Payroll employment rose by 192,000 jobs in February following an upwardly revised increase of 63,000 jobs in January. The unemployment rate slipped to 8.9 percent in February from 9.0 percent in January.
Still, the dollar remained out of fashion as traders bet the numbers will not convince the Federal Reserve to scale back its unprecedented support for the nation’s economy.
The dollar touched $1.4006 versus the euro – its lowest since last November. The buck has been in decline against the euro since mid-February, when European officials stepped up their inflation-fighting rhetoric.
After hawkish comments from European Central Bank president Jean-Claude Trichet delivered yesterday, the ECB is widely expected to hike rates in April.
The dollar pulled back versus the yen after touching a 2-week high of Y83.06. The dollar was back to Y82.20 by mid-day.
There was little movement against the Canadian loonie for a third day, with the dollar staying near this week’s three-year low three cents below par.