US dollar gains on jobs, manufacturing figures

The US dollar made gains on Friday after new data made it look as if the Federal Reserve will not cut interest rates later in the year as many analysts have suspected they might. New jobs data showed 157,000 new positions created in May, while separate data indicated that the manufacturing sector grew strongly over the month. The dollar added 0.2 percent versus sterling over the week, to $1.9791, while it was up 0.3 percent against both the yen and the Swiss franc, trading at ¥122.11 SFr1.2305 respectively.

New Eurozone data showed that retail sales were strong in Germany, while Eurozone unemployment hit a record low in May. These indications of a strong economy raised the likelihood that the European Central Bank’s course of interest rate increases is not yet over. The shared currency added 0.1 percent against the yen and versus sterling as it traded at ¥163.90 against the yen and at £0.6787 in relation to sterling.

The Canadian dollar was strong amid suggestions that the central bank there is planning to raise interest rates soon. By the end of the week, the Canadian currency had added 1.3 percent to C$1.0642 versus its US counterpart, its highest level against the greenback since mid-1977.

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