The euro surged 2 percent against the dollar here Friday following publication of a US job creation figure for last month that was far below market expectations and deeply disappointing to investors.
The single currency in late-day trading was at US$1.2403, against US$1.2197 late Thursday in new York.
The euro jumped to US$1.2424 from US$1.2185 within minutes of news from Washington that the US economy created a mere 21,000 jobs in February rather than the 126,000 expected by analysts.
Had the anticipated figure been met, analysts said, it would have been seen as heralding a move by the US Federal Reserve to raise interest rates, thereby slowing the appreciation of the euro.
Against the yen the dollar rose to ¥111.44 from ¥111.08 on Thursday.
"With markets reacting more to poor data than strong data, the dollar got pummelled in the wake of these numbers," said Adam Cole, senior forex strategist strategist at Credit Agricole Indosuez.
Propsects for a strong jobs report had helped the dollar post sharp gains over the last few days.
Starting the week at around the US$1.2540 mark, the euro dropped to a low of US$1.2060 on Wednesday.
Analysts said Friday's disc-ouraging news could herald a renewed period of dollar weakness, with the euro poised to test its all-time high of over US$1.29 once again to the likely discomfort of European officials.
"As of Monday, the markets will start testing the euro's upside and the European Central Bank's pain threshold," said Neil Mackinnon, chief economist at ECU Group.
Once the US$1.25 is breached, Mackinnon said he expected ECB officials to try to "talk down" the euro to prevent any further appreciation that could nip any eurozone recovery in the bud.
Prior to the dollar's bounce-back over the past couple of weeks, ECB officials had voiced their concerns about the euro's ascent.
But Mackinnon said he doubted their concerns would have much impact and stressed that talk would have to be backed by action, with the ECB cutting its interest rates to reduce differentials with those in the US.
Friday's report also dampened any suggestion that the US Federal Reserve might raise its own rates any time soon.
The euro was changing hands at US$1.2403 from US$1.2197 late on Thursday in New York, ¥138.24 (¥135.54), £0.6728 (£0.6693) and 1.5781 Swiss francs (Sf1.5770).
The dollar stood at ¥111.44 (¥111.08) and 1.2721 Swiss francs (Sf1.2920).
The pound was at US$1.8432 (US$1.8231), ¥205.44 (¥202.44) and 2.3447 Swiss francs (Sf2.3542).
On the London Bullion Market, the price of an ounce of gold stood at US$399.25 against US$392 on Thursday afternoon.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last