Dollar given support despite weak job stats

Published: 10 Feb at 9 AM Tags: Euro, Dollar,

Expectations that the Federal Reserve will push ahead with its monetary stimulus reduction have helped support the dollar. Analysts believe the US central bank will reduce its bond buying programme even though the latest jobs figures have been disappointing.

The dollar is currently trading at 102.40 yen and the dollar index has risen 0.1 per cent to 80.735. US payroll figures announced at the end of last week showed an increase of 113,000. The figure was expected to rise by 185,000. However, the unemployment level actually dropped to 6.6 per cent, the lowest it has been in five years.

The euro is also up to its highest level against the yen since the end of last month and is currently worth 139.52. Against the dollar the single currency has shed 0.1 per cent to end at $1.3621.

The European Central Bank is still to announce any changes to its policy, but any deterioration in inflation in the eurozone could see the bank take action as soon as next month.

Elsewhere the New Zealand, Canadian and Australian dollars made a positive weekly gain. The kiwi is worth $0.8272, the US dollar is buying C$1.1029 and the Aussie is not far off a four-week high at $0.8934.