Dollar Rises Against Euro And Yen After Jobs Data
NEW YORK -- The dollar advanced sharply against several key rivals Friday after the U.S. Labor Department reported that the April unemployment rate fell to 5.0% and 20,000 jobs were lost, far fewer than expected.</br></br>The euro declined by more than a full U.S. cent to $1.5360, its lowest level in more than a month. This comes a week after the currency climbed to a historical high of $1.6020. Also Friday, the dollar increased to its highest level since February against the yen.</br></br>U.S. employment fell in April for the fourth-straight month, but at a much slower pace than previously, suggesting the economy may be starting to find its footing after several months of stagnation. The dollar took this as positive news.</br></br>"The underlying nonfarm number was way better than the average market expectations," especially as markets priced in room for even deeper disappointment just before the report's release, said Tom Fitzpatrick, global head of currency strategy at Citigroup in New York. The report "will probably help the dollar in the short term."</br></br>The data included a surprising decline in the jobless rate and supported expectations that the Federal Reserve will keep official interest rates steady for an extended period as it gauges the effect of past rate cuts and recent credit initiatives on financial markets and the economy.