Added To The Dollar's Allure

Fears about Spain's high debt level pushed the euro down broadly on Thursday to its lowest level against the dollar in three weeks and prompting the Swiss National Bank to take action to curb the franc's strength. The euro fell for a fourth straight day against the greenback as a jump in Spain's borrowing costs made investors nervous about the country's ability to meet budget targets that could mark another escalation of the euro-zone debt crisis. With the euro zone engulfed in a debt crisis, the European Central Bank's policy should remain accommodative, with dovish comments by ECB president Draghi on Wednesday affirming that notion. That contrasts with the U.S. Federal Reserve, which this week downplayed expectations of adding more stimulus. As the U.S. economy improves, U.S. short ...

Worries about high debt levels in Spain hurt the euro on Thursday, driving it to a three-week low against the dollar and causing the Swiss National Bank to step in as the franc broke through a ceiling the Swiss central bank set against the common currency last year. Spanish borrowing costs rose as investors, following a poor debt auction on Wednesday, became increasingly nervous about the country's ability to meet budget targets that could mark another escalation of the euro zone debt crisis. A U.S. government report showing the number of Americans lining up for new jobless benefits fell to the lowest level in nearly four years last week only added to the dollar's allure against the euro. The U.S. outlook was in sharp contrast with Europe and Britain where separate reports ...

Robust U.S. jobs data spurred investors to buy the U.S. dollar and sell yen on Friday with the rosier economic report curtailing some expectations the U.S. Federal Reserve will hold off raising interest rates until 2014. The strong jobs data diminished the greenback's safe haven status as investors took on more risk. The main beneficiary was the euro where initial losses on the report were erased by the end of trade despite the overhang of Europe's sovereign debt crisis. Data from the U.S. Labor Department showed 243,000 non-farm jobs were created in January, its fastest pace in nine months, pulling the unemployment rate to an unexpected three year low of 8.3 percent. Friday's data erodes the argument for more economic stimulus by the U.S. Federal Reserve and for some investors even ...

The dollar gained against the yen and euro on Friday, sending both to session lows after a report showed a larger-than-expected gain in U.S. jobs, which investors perceived as reducing the likelihood of further stimulus by the Federal Reserve anytime soon. To some investors it even suggested the U.S. central bank may raise interest rates sooner than it has indicated in recent days. Higher rates will raise the attractiveness of dollar-denominated securities and demand for the dollars to buy them. The report showed a rise of 243,000 jobs in U.S. nonfarm payrolls in January, while the unemployment rate unexpectedly fell to 8.3 percent from 8.5 percent . Analysts were forecasting a gain of 150,000 jobs in January and the unemployment rate to hold steady, according to a Reuters poll. A ...