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LONDON, Sept 6: The dollar took advantage of sturdy growth in US nonfarm payroll numbers to advance on the euro and other major currencies in late trade on Friday, dealers said.
The single European currency stood at 0.9850 dollars, down from 0.9918 late on Thursday in New York.
The dollar traded at 118.43 yen against 118.34 on Thursday.
Total US nonfarm payroll employment rose by 39,000 in August from July and the unemployment rate fell to 5.7 per cent from 5.9 per cent in July, the lowest rate since March.
There was also a hefty upward revision of last month’s figures. In July, total nonfarm payrolls rose a revised 67,000, up from the initial estimate of 6,000, the Labour Department said.
“All talk of Fed easing will be taken off the agenda for now,” said Will Rugg, head of currency strategy at Standard and Poor’s MMS.
The data was especially significant because previous payroll figures have often been revised lower.
But a lot of uncertainties still loom in the background, said Divyang Shah, Global Strategist at IDEAglobal.com, who noted the US is seeking support for an attack on Iraq as the first anniversary of the September 11 attacks on the US draws closer.
But while the risk of higher oil prices and increased fiscal expenditure, coupled with concerns over a double-dip recession in the US, might serve to weaken the dollar, financial markets seem not to consider the euro or yen as attractive alternatives, Shah said.
The pound weakened against the dollar but held up well elsewhere after British manufacturing and industrial production data showed a rebound in the sector following a slump in June due to the queen’s Jubilee holiday and the World Cup.
The euro was changing hands at 0.9850 dollars, down from 0.9918 dollars late on Thursday in New York, 116.64 yen (117.40), 0.6315 pounds (0.6328) and 1.4593 Swiss francs (1.4588).
The dollar was being quoted at 118.43 yen (118.34) and 1.4816 Swiss francs (1.4713).
The pound was at 1.5597 dollars (1.5664), 184.70 yen (185.41) and 2.3108 Swiss francs (2.3052).—AFP
