By: Barbara Zigah
Following Friday’s release of disappointing employment data from the United States, the U.S. Dollar lost ground in Asian trading today. The U.S. Dollar Index, which gauges the greenback versus other major currencies, slipped to 76.938 .DXY, a decline of nearly .7%; on Friday, it traded at a high of 78.187 .DXY. Versus the Japanese Yen, the U.S. Dollar slipped to 92.22 Yen, a decline from 92.68 Yen in Friday’s New York trading.
The U.S. Labor Department reported that nearly 85,000 jobs were shed in December, significantly higher than the 20,000 jobs loss predicted by a poll of economists. The weak jobs report reinforces the market’s position that the Federal Reserve Bank will continue to keep interest rates at their historic lows for the time being. Most market players expect that the U.S. currency will continue to be under pressure while speculators reduce their long positions.
A recent rise in the price of gold helped the Australian Dollar reach multi-currency peaks in Asian trading. As reported at 4:52 p.m. in Sydney, the Australian Dollar surged to a new 26-month peak versus the single currency Euro, trading at 0.6442 Euros. The Australian Dollar also moved up on the U.S. Dollar, striking a new 5-week peak of $0.9318. The Japanese Yen fared no better against the Aussie, trading at 85.92 Yen, a new 15-month peak.
U.S. Dollar loses ground on Disappointing Labor Report
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.