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| European Central Bank (Photo credit: kumbarov) |
The dollar weakened versus all 16 of its most-traded counterparts after a Labor Department report showing payrolls rose less than forecast added to speculation the Federal Reserve will undertake a third round of bond buying. The U.S. central bank meets Sept. 12-13. Canada’s dollar rallied to the strongest level in a year after employment grew. The Swiss franc fell the most since November versus the shared currency on reduced demand for safety.
“Draghi and payrolls were the two main events of the week and in both cases the strong conclusion that followed both outcomes was that the cavalry had come in,” said Richard Franulovich, a senior currency strategist at Westpac Banking Corp. in New York. “The Fed and ECB are saying they’re underwriting risk, so there’s no point in sitting on cash. Sell the dollar, buy risk.”
The 17-nation euro advanced 1.9 percent for the week to $1.2786, touching $1.2817 yesterday, the highest level since May 22. The gain is the largest since the five days ended Feb. 24. The shared currency had the largest weekly rise versus the yen since Aug. 17. It fetched 100.25, with a 1/7 percent gain, and reached 100.43, the most since July 4.
Weak Dollar
The yen rose 0.2 percent to 78.24 per dollar. It touched 78.02 the strongest since Aug. 1. South Africa’s rand was the biggest winner against the dollar, rising 2.8 percent, while Brazil’s real had the smallest gain versus the greenback at 0.1 percent.. ... Continue to read.
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