Dollar drops on soft jobs data

Published: 13 Jan at 8 AM Tags: Euro, Dollar,

Surprisingly soft jobs data coming out of the US has caused the dollar to drop to its lowest level against the yen in nearly four weeks. The figures have caused some analysts to question how quickly the Federal Reserve will now be able to scale back its massive stimulus operation.

The greenback is 0.6 per cent down against its Japanese rival at 103.48 yen. The markets are closed in Japan today because of a public holiday. Pressure was placed on the dollar after it was revealed that December employment figures were the lowest in three years.

The euro has also dropped against the yen by 0.5 per cent to 141.50 yen. At one point the single currency hit a low of 141.24 yen, its weakest level in nearly a month. The euro is however holding steady against the dollar at $1.3675. The dollar index has eased slightly to 80.525.

Although the US jobs figures for last month were disappointing, most analysts do not believe the Fed will halt its plans to reduce quantitative easing.

Elsewhere the Australian dollar has pulled back against the greenback to $0.9035, its highest level in a month. Poor jobs figures from Canada saw the Canadian dollar languish at four-year lows against the US dollar.