Dollar Rises Against Euro Following U.S. Job Numbers

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Dollar Advances as U.S. Employers Cut Fewer Jobs Than Forecast

By Oliver Biggadike and Ye Xie


Aug. 7 (Bloomberg) -- The dollar advanced against the currencies of six major U.S. trading partners as a government report showed employers eliminated fewer jobs in July than economists forecast.

The yen dropped against all of its major counterparts as the payroll report indicated a recovery in the world’s largest economy, encouraging Japanese investors to buy higher-yielding assets overseas. U.S. Treasury yields rose, making U.S. assets more attractive to international investors.

“We are seeing the U.S. yields moving higher, and there might be massive liquidation of short-dollar positions,” said Sebastien Galy, a currency strategist at BNP Paribas Securities SA in New York. “People had been badly positioned for this dollar move.” A short is a bet an asset may decline.

The dollar climbed 0.4 percent to $1.4283 per euro at 9:45 a.m. in New York, from $1.4345 yesterday. The U.S. currency gained 1.4 percent to 96.78 yen from 95.46. The euro advanced 1.3 percent to 138.25 yen from 136.94.

Today’s advance in the dollar marks a return to a view that good U.S. economic news benefits the currency as traders speculated that the Federal Reserve will boost borrowing costs sooner rather than later.

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