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Forex - Dollar falls in early U.S. trade

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Forexpros - The U.S. dollar extended losses against its major counterparts Friday, a day after all three benchmark U.S. stock indexes sank into the red for the year, and promising labor data did little to quell fears of a slowdown in global economic growth.

In early U.S. trade, the greenback was lower against the euro, with EUR/USD rising 0.58% to hit 1.4176.

The U.S. Labor Department reported Friday that unemployment fell to 9.1% in July from 9.2% the previous month. Market expectations were for the jobless rate to remain unchanged.

The report noted that the U.S. economy added 117,000 jobs in July. The economy typically gains about 200,000 new position in times of expansion.

July's 9.1% unemployment rate represents the 30th straight month the figure has remained above 8%, the longest such stretch for the U.S. economy since the Great Depression of the 1930's.

Shares on Wall Street were lifted briefly in the session but soon pared gains as the positive effects of the Labor Department report faded and global growth concerns took center stage.

In early Friday trade, the Dow Jones Industrial Average fell 0.91% to 11,280, the Nasdaq Composite Index retreated 2% to 2,505, and the S&P 500 gave up 1.4% to trade at 1,183.

The greenback was down against the pound, with GBP/USD adding 0.67% to 1.6365.

The dollar lost ground against both the yen and the Swiss franc, with USD/JPY dropping 0.53% to hit 78.46, and USD/CHF lower by 0.07% to hit 0.7630.

The greenback was higher against its Canadian, Australian and New Zealand counterparts with USD/CAD up 0.34% to hit 0.9846, AUD/USD down 0.70% to hit 1.0385, and NZD/USD lower by 0.37% to hit 0.8330.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.48% at 75.18.

The market was expected to focus on next week's U.S. Federal Reserve decision on short-term interest rates and the prospects for quantitative easing.

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


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

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