November 05, 2006	Sunday	Shawwal 12, 1427

NEW YORK, Nov 4: The dollar jumped on currency markets on Friday on news of a fall in the US unemployment rate and the upward revision of job creation figures for August and September.

The dollar was worth 117.99 yen, against 117.11 on Thursday.

The Labour Department said the US unemployment rate fell to 4.4 per cent of the working population -- the lowest level since May 2001 -- from 4.6 per cent in September.

The agency also revised up its estimate of job creation in the prior two months. It said 148,000 jobs were added in September, nearly triple a first estimate of 51,000, and 230,000 in August, instead of 188,000.

The improvement on the jobs front, coupled with a 0.4 per cent rise in average hourly wages, diminished expectations that the Federal Reserve will cut borrowing costs any time soon.

The Fed kept its key interest rate unchanged at 5.25 per cent for the third straight month in October following 17 consecutive quarter point increases.

The underlying strength in current labour market conditions suggests that our call for an easing of monetary policy by 50 basis points in the first quarter of 2007 is too aggressive, said Michael Carey, analyst at Calyon.

Meanwhile, the pound gave up earlier gains made on a strong services survey in Britain. The purchasing managers' index rose to a six-month high of 59.3 in October from 57.0 in September, beating predictions of a dip to 56.7.

The numbers will give the Bank of England further reason to raise interest rates next week.

The euro itself remains relatively well-supported after European Central Bank president Jean-Claude Trichet gave firm hints Thursday that eurozone interest rates would rise again in December.

The pound bought 1.9007 dollars around 2200 GMT, against 1.9084 late Thursday.

The dollar advanced to 1.2535 Swiss francs, from 1.2450.---AFP