The dollar plunged against most emerging-market currencies after job growth lagged market estimates, fuelling speculation that the Federal Reserve will hold back its plans to cut down stimulus.
The greenback plunged for the first time in seven days versus the yen after non-farm payrolls grew 192,000 in March against an estimate of 200,000. The Canadian dollar hit its highest level in four weeks on favorable job statistics, while the Brazilian real led the rally of emerging-market currencies.
“The number disappointed NFP bulls, but it was strong enough so that there was no sign of any unexpected weakening of the economy and not so strong as to worry investors that the Fed would accelerate its withdrawal of liquidity,” Richard Cochinos, the New York-based head of Americas Group of 10 currency strategy at Citigroup Inc told Bloomberg. “Higher-beta G-10 currencies and emerging markets are the biggest winners.” Higher-beta currencies tend to have the greatest volatility.
The dollar plunged 0.6 percent to 103.29 yen as of 5 p.m. in New York trade. However, it surged 0.1 percent to $1.3705 per euro after earlier touching $1.3673, its highest level since Feb. 27. The euro fell 0.7 percent to 141.54 yen.
The Bloomberg Dollar Index plunged 0.3 percent to 1,016.65, its steepest intraday low since March 6.
The Brazil real was the best performing among 24 emerging-market currencies after its central bank planned an auction on Friday to lengthen the maturities of 10,000 foreign-exchange swap contracts that were due on May 2 and valued at $8.73 billion.
The real fell 1.9 percent to 2.2358 a dollar, reversing its weekly losses into a 1.1 percent advance. On the other hand, the Canada’s dollar surged to its highest level in four weeks after employment grew by 42,900, according to Statistics Canada. This saw the jobless rate plunge from 7 percent to 6.9 percent.
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