Dollar Pares Losses on Labor Market Speculation

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Dollar Pares Losses on Labor Market SpeculationThe dollar pared losses as the market evaluated indicators of labor market weakness amid speculation of when the Federal Reserve may hike its first interest rate since 2006.

The U.S. currency rose 0.1 percent to trade at 114.67 yen after earlier rising to 115.59 on Nov. 7, its highest level since November 2008. It gained 0.1 percent to $1.2441 against the euro. The shared currency remained slightly unchanged at 142.70 yen.

“It’s a bit of a seesaw day,” Peter Gorra, a New York-based head of foreign-exchange trading at BNP Paribas SA, told Bloomberg News. “The trend is still for dollar strength so I think people always look to buy the dollar on some kind of dip.”

The dollar fell against the ruble after the Bank of Russia promised to reduce funds used to speculate on depreciation of the currency. The China’s yuan rose along with the New Zealand and Australian dollars following the release of a report that showed exports grew more than expected in China. The ruble rose 2.7 percent to steady at 45.3725 per dollar, the most since Oct. 30.

The yuan rose 0.05 percent to trade at 6.1196 per dollar after China’s exports rose to $45.4 billion, compared with a forecast of $42 billion, reported the statistics bureau on Nov. 8. The Australian dollar appreciated 0.1 percent to 86.46 U.S. cents while the New Zealand counterpart rose 0.3 percent to 77.78 U.S. cents.

Employers across the U.S. boosted their payrolls by 214,000 workers in October, reported the Labor Department on Nov. 7.  Economists surveyed by Bloomberg News had expected the jobs to increase by 235,000. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com