The single currency shrugged off worse-than-expected US non-farm payrolls data to post gains, closing up 0.2% at 1.4574.
- Date revealed that the US economy lost 263,000 jobs in September, which was more than had been expected, according to official non-farm payrolls figures.
- The Labor Department revealed that US unemployment rate rose to 9.8%, fueling fears that the labour market could undermine economic recovery.
- The euro initially dropped sharply to a three-week low of 1.4485 on the release of the U.S. payrolls report, as investors were encouraged to the relative safety of the greenback.
- However, dollar gains were modest, and the single currency was able to rebound strongly, climbing near $1.46, as analysts suggested caution in buying the US currency amid signs that the recovery could stall.
- Analysts noted that trading is often volatile following the highly anticipated US monthly jobs data.
- The dollar has fallen against the euro today, losing 0.3%, after the G7 finance chiefs refrained from calling for measures to stop the U.S. currency’s decline.