Sunday Observer Online
Ad Space Available HERE  

Home

Sunday, 8 February 2009

Untitled-1

observer
 ONLINE


OTHER PUBLICATIONS


OTHER LINKS

Marriage Proposals
Classified
Government Gazette

Dollar falls against euro after grim US jobs data

NEW YORK, (AFP)

The dollar weakened against the euro Friday trade after another horrific set of US employment figures dented its safe-haven allure.

The euro was at 1.2943 dollars at 2200 GMT, up from 1.2786 dollars late Thursday.

The dollar rose to 91.83 yen from 91.13 yen.

The US Labor Department reported the US unemployment rate spiked to a 16-year high of 7.6 percent in January from 7.2 percent in December as nearly 600,000 jobs were lost.

"Over the past two weeks, the US docket has set a severe pace for its recession, showed the Fed (Federal Reserve) has few options left to stabilize the economy and employment data showed the worst rate of job losses for the world's largest economy on record," said John Kicklighter at Forex Capital Markets.

Dealers said that after another eventful week, the currency markets were still caught in a dilemma of sticking with the dollar for its safe-haven attributes or taking on a little more risk and branching out.

"Through all of this, however, the dollar has not seen a significant shift in trend. With fundamentals fully priced in and the sense of risk maintaining the currency's safe-haven status, there are contradicting influences balancing the dollar's demand," he said.

Weak US data has been supportive of the dollar in past months because it encourages such safe-haven buying "and we continue to favor 'a buy into the dips' mentality for the dollar," said Audrey Childe-Freeman of Brown Brothers Harriman.Dealers noted that the euro may face more pressure as the eurozone economy weakens further, with industrial output in Germany, the region's biggest economy, down much more than expected in December, figures showed on Friday. The British pound extended gains won a day earlier when the Bank of England slashed its key interest rate by 50 basis points to an all-time low of 1.0 percent.

Although low rates generally make a currency less attractive, that logic has been upset in recent weeks amid expectations for a stimulative effect that could lift sluggish economic activity.

In late New York trade Friday, the dollar slipped to 1.615 Swiss francs from 1.1724 late Thursday.The pound rose to 1.4789 dollars from 1.4623.

 

EMAIL |   PRINTABLE VIEW | FEEDBACK

Gamin Gamata - Presidential Community & Welfare Service
Ceylinco Banyan Villas
www.lankanest.com
www.liyathabara.com
LAND FOR SALE
Donate Now | defence.lk
www.apiwenuwenapi.co.uk
LANKAPUVATH - National News Agency of Sri Lanka
www.peaceinsrilanka.org
www.army.lk
www.news.lk
www.defence.lk
 

| News | Editorial | Business | Features | Political | Security | Review | Sports | World | Panorama | Junior | Letters | Obituaries |

 
 

Produced by Lake House Copyright © 2009 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor