Friday, January 7, 2011

Dollar Fluctuates As Fewer Jobs Added Than Forecast

Dollar Fluctuates As Fewer Jobs Added Than Forecast

Bloomberg reports that the dollar fluctuated against its major currency counterparts following the U.S. payrolls report that added fewer jobs than economists had forecast.

The euro hit a three-month low against the greenback as Belgian and Irish credit-default swaps reached a record while the cost of insuring Portugal and Italy's debt rose.

The dollar dropped 0.4% to 83.04 yen this morning from 83.33 yen yesterday. It advanced 0.3%, however, to $1.2968 per euro, from $1.3003. It saw its strongest level on September 14, 2010, when it was $1.2936 per euro.

According to JPMorgan Chase analysts, the dollar will fall about 12% to $1.48 per euro and drop 7% to 78 yen by the end of 2011 if the Fed keeps interest rates close to zero and the fiscal deficit remains near a record high.