U.S. Dollar Effect on US Job Data

The U.S. dollar rose against major currencies in late New York trading on Thursday as concerns about euro zone banks weighed on the euro and raised risk aversion appetite.

The euro dipped further on Thursday as investors concerns the health of European banks. Also, adding the concerns, the auction of French bonds did not attract decent demands and saw yields rose. The shared currency fell as low as 1.2783 — the lowest level since Sept. 2012 – against the dollar on Thursday.

Meanwhile, the positive U.S. job data helped to push the dollar higher. U.S. Payrolls processor Automatic Data Processing Inc. reported that private sector employment climbed 325,000 in December, much stronger than expected.

Also, the U.S. Labor Department said that initial jobless claims dropped by 15,000 last week to a seasonally adjusted 372,000, also beating the expectation.

The dollar index gained nearly 1 percent to 80.92 on Thursday.

In late Thursday trading, the dollar bought 77.18 Japanese yen, comparing with 76.75 from late Wednesday. The euro fell to 1.2782 dollars from 1.2938.

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