RTTNews - The dollar posted sharp rallies against its major rivals on Friday in New York, boosted by a better-than-expected employment report that left traders thinking of a quick economy recovery. The rise took the buck away from multi-month lows against the euro and pound.
The non-farm payroll employment fell by 247,000 jobs in July following a revised decrease of 443,000 jobs in June. Economists had been expecting employment to fall by 325,000 jobs compared to the drop of 467,000 jobs originally reported for the previous month.
Additionally, the Labor Department said that the unemployment unexpectedly edged down to 9.4 percent in July from 9.5 percent in June. The decrease surprised economists, who had been expecting the unemployment rate to edge up to 9.6 percent.
The dollar rose to 1.4175 against the euro, extending yesterday's gains. Earlier in the week, the greenback hit a 7 1/2-month low of 1.4444.
In the Eurozone, German exports jumped 7% month-on-month in June, much larger than the revised 0.2% rise seen in May and 0.9% expected by economists. Meanwhile, imports grew 6.8%, reversing May's revised 1.9% drop. Economists were looking for a monthly growth of 0.7% in imports.
The greenback rallied to a weekly high near 1.6650 against the British pound. Earlier in the week, the buck hit a 9 1/2-month low of 1.7042.
The Office for National Statistics said the U.K. output prices measure for all manufactured products rose 0.3% in July from June. Year-on-year, output prices slipped 1.3%. Economists were expecting a flat growth on a monthly basis and an annual decrease of 1.7%.
The dollar rose to a seven-week high of 97.779 against the Japanese yen. The pair had been in a range for about two weeks before the greenback's surge.
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