RTTNews - The euro saw weakness against other majors on Friday in New York as traders continued to mull the European Central Bank's latest move. The single currency fell against the dollar and sterling and gave back an early surge against the yen.
Investors considered comments from several European Central Bank members on Friday, including President Jean-Claude Trichet, who said this is a time of unprecedented uncertainty and challenges. This comes a day after the ECB left its key interest rate unchanged at a record low of 1%.
With a mid-morning downtrend, the common currency backed away from multi-month lows against the dollar and yen and a multi-week low against the British pound.
The euro fell to a weekly-low of 1.3972 versus the dollar. Earlier in the week, the common currency hit a five-month high of 1.4338 versus its U.S. rival.
A U.S. Labor Department report showed that non-farm payroll employment fell by 345,000 jobs in May following a revised decrease of 504,000 jobs in April. Economists had expected a decrease of about 520,000 jobs compared to the loss of 539,000 jobs originally reported for the previous month.
The unemployment rate jumped to 9.4 percent in May from 8.9 percent in April.
The euro turned lower against the British pound after earlier hitting a two-week high. The single currency fell to 0.8736, compared to its high of 0.8866.
Friday, the Office for National Statistics said output prices for all manufactured goods in the U.K. dropped 0.3% year-on-year in May, reversing a 1.3% rise in April. This was the first annual decrease since July 2002. Economists were expecting a 0.4% fall.
The European currency spiked to a new 7 1/2-month high of 139.21 against the Japanese yen, but gave back the gains shortly thereafter. The pair moved near its overnight levels around 137.40 in the early afternoon.
Bank of Japan Executive Director Hiroshi Nakaso said on Friday that reducing interest rates to zero could cause troubles for the functioning of money markets.
Back in the Eurozone, Trichet also noted that Eurozone policymakers did not hesitate to charter unknown territory and to move forcefully to battle the adverse consequences of the financial crisis.
Also on Friday, ECB member John Hurley said in an interview with an Irish broadcaster that after recording a significant contraction in 2009, the Eurozone economy will see an extended and gradual recovery next year.
And ECB Governing Council member Axel Weber said the extensive interventions made by central banks and national governments may have resulted in a slowdown in the rapid pace of economic downturn, but the future remains uncertain.
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