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Finance: Dollar rises and falls according to figures from the U.S. jobs

(Sun Aug 9th, 2009, by Anil Kumar Raju Addipalli)


The greenback saw mixed movements after the release of employment figures in U.S. in July, Friday, finally opting for a solid rise in the foreign exchange market, the highest since seven days. 

Around 18H00 GMT , the euro stood at 1.4166 dollars against 1.4347 dollars Thursday to 21H00 GMT. Against the yen, the euro made great strides to 138.41 yen against 136.94 yen the day before. The dollar also took the face of Japanese currency to 97.69 yen against 95.44 yen Thursday. "We moved away as usual trade whenever the figures were better than expected and an appetite for risk fueled, in favor of the dollar weakening," noted Samarjit Shankar, Bank of New York Mellon. 

The taste of risk, usually disfavours values refuges face more foreign exchange income. The yen and Swiss franc Friday followed this logic and showed heavy losses after the release of U.S. unemployment figures. "This response could indicate how the market has tired of the weakness of the dollar" said Daragh Maher, Calyon taking unable to witness the eve of the euro to take advantage of the rebound in German industrial orders in June . 

This departure from the usual trend has not escaped and analysts, including Nick Bennenbroek, Wells Fargo, ironically on the investors, "perhaps begin to think that good news for the U.S. economy could be a good news for the dollar. "The good surprise is coming mainly from the decrease in the unemployment rate to 9.4% in July against 9.5% the previous month, while economists were expecting a rise to 9.6%. 

In a first step, the dollar value refuge par excellence, had lost ground with the good humor of traders face to the statistics, giving a cent to 1.4414 dollar per euro. But a few minutes after the greenback erased its losses and exchange rate under 1.42 dollar for one euro, or higher than the level at which he had begun the week. 

"The dollar goes up on the idea that the United States could be among the first to lift the global economy out of recession, accordingly with the U.S. Federal Reserve as the first central bank to tighten monetary policy," which would be positive for growth and against inflation, "said Samarjit Shankar.

At 18.00 GMT, the pound sterling back facing the euro to 85.04 pence per euro and fell opposite to the greenback at 1.6657 dollars for a pound. The Swiss currency fell sharply against the euro at 1.5349 Swiss francs to one euro, as against the dollar at 1.0833 Swiss francs to the dollar. The Chinese currency finished at 6.8318 yuan against one dollar for 6.8313 yuan on the previous day.

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