Dollar rises again on safe-haven bids; shrugs off poor U.S. jobs number

Credit: REUTERS/Thomas White

By Gertrude Chavez-Dreyfuss

NEW YORK, April 3 (Reuters) - The dollar resumed its climb against major currencies on Friday as investors took refuge in safety bids amid worsening economic fallout from the coronavirus pandemic.

"As we see poor data coming in from Europe, UK, Italy, if you're trying to be rushing anywhere, it would be U.S. Treasuries and the U.S. dollar as a safe haven," said John Doyle, vice president of dealing and trading at Tempus Inc in Washington.

The dollar largely shrugged off the U.S. non-farm payrolls report that showed massive job losses of 701,000 last month, compared with expectations of 100,000 lost employment.

March's job contraction abruptly ended historic 113 straight months of employment growth. The Labor Department also February's number to 275,000 job gains. The unemployment rate rose to 4.4% from 3.5% the previous month.

"Today's jobs number and yesterday's jobless claims report paint a picture of how bad things can actually be," Doyle said. "But we're expecting things to be very poor, which is why you're seeing limited reaction in the currency market so far."

U.S. initial claims for unemployment benefits rose to 6.65 million in the latest week from an unrevised 3.3 million the previous week. The figures far exceeded the median estimate of 3.50 million in a Reuters survey of economists.

In mid-morning trading, the U.S. dollar index was up 0.6% at 100.78 =USD. The index was is on course for a near 2.5% gain over the week, having whipsawed last month from highs on a scramble for cash before slumping as the U.S. Federal Reserve flooded the market with liquidity.

The Japanese yen, Swiss franc, euro, sterling and the Australian and New Zealand dollars all also lost ground as the dollar strengthened across the board. JPY=EBS, CHF=EBS, GBP=D3, AUD=D3, NZD=D3.

========================================================

Currency bid prices at 9:08AM (1308 GMT)

Description

RIC

Last

U.S. Close Previous Session

Pct Change

YTD Pct Change

High Bid

Low Bid

Euro/Dollar

EUR=

$1.0782

$1.0856

-0.68%

-3.82%

+1.0864

+1.0776

Dollar/Yen

JPY=

108.5700

107.9000

+0.62%

-0.27%

+108.6700

+107.8100

Euro/Yen

EURJPY=

117.07

117.13

-0.05%

-4.00%

+117.3800

+116.7400

Dollar/Swiss

CHF=

0.9783

0.9736

+0.48%

+1.08%

+0.9795

+0.9729

Sterling/Dollar

GBP=

1.2249

1.2392

-1.15%

-7.62%

+1.2410

+1.2244

Dollar/Canadian

CAD=

1.4132

1.4131

+0.01%

+8.82%

+1.4224

+1.4116

Australian/Dollar

AUD=

0.5997

0.6059

-1.02%

-14.57%

+0.6075

+0.5981

Euro/Swiss

EURCHF=

1.0551

1.0566

-0.14%

-2.77%

+1.0577

+1.0544

Euro/Sterling

EURGBP=

0.8800

0.8754

+0.53%

+4.09%

+0.8808

+0.8742

NZ Dollar/Dollar

NZD=

0.5856

0.5916

-1.01%

-13.06%

+0.5922

+0.5844

Dollar/Norway

NOK=

10.4421

10.3582

+0.81%

+18.98%

+10.4619

+10.3830

Euro/Norway

EURNOK=

11.2623

11.2798

-0.16%

+14.48%

+11.3347

+11.2306

Dollar/Sweden

SEK=

10.1752

10.0744

-0.06%

+8.86%

+10.1799

+10.0928

Euro/Sweden

EURSEK=

10.9702

10.9769

-0.06%

+4.79%

+10.9810

+10.9250

(Reporting by Gertrude Chavez-Dreyfuss Editing by Nick Zieminski)

((gertrude.chavez@thomsonreuters.com; 646-223-6322; Reuters Messaging: gertrude.chavez.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.