Dollar waves at 15-year low, but departs quickly
The dollar neared a 15-year low against the yen on Wednesday on fears the Federal Reserve could embrace more monetary easing to jolt a faltering recovery but it recouped its losses on better-than-expected U.S. jobs data.
Data showing U.S. private employers added more jobs than expected in July helped the dollar recover lost ground against the yen and also slowed recent gains in the euro, which hit a three-month high on Tuesday.
Private employers added 42,000 jobs in July, compared with a revised gain of 19,000 in June, the report by a payrolls processor ADP Employer Services showed on Wednesday.
The rise in hiring was slightly higher than an estimate from economists surveyed by Reuters for a gain of 40,000 private-sector jobs. The June ADP figure originally was reported as a gain of 13,000 jobs.
While above market expectations the gains still show the economy has not gained the job-creating momentum to pull the unemployment rate down from above nine percent.
Employment levels are considered key to a pickup in consumer spending and to boosting overall U.S. economic growth which has shown signs of weakness in recent months. Data last Friday showed U.S. economic growth slowed in the second quarter of this year.
Economists sometimes use the ADP report to narrow down their estimates for the U.S. Labor Department’s payrolls numbers due Friday, but it is not always accurate in predicting the outcome.
Posted on August 4, 2010, in Job Search, Newspaper & Journal Articles, Stocks, Bonds, & Funds and tagged dollar, employment, fed, federal reserve, jobs, private sector, Wall Street, yen. Bookmark the permalink. Leave a comment.