USD declines as pound, yen see gains

The US dollar dropped versus both the euro and the yen on Friday after the US Labor Department reported that jobs growth in December fell to its lowest level in four years and the unemployment rate jumped to 5 percent in the last month of 2007 but was helped by a reported gain in service industry activity.

The greenback fell to a one-month low against the euro and the yen at $1.4825 to the euro and at ¥107.91 to the yen during the session and was trading at $1.4764 to the euro and at ¥108.5650 at just before 1 p.m. in New York.

Meanwhile, the pound gained on the dollar and traded about even versus the euro on gains in the service industry and on a report that UK wages were up in the most recent quarter.

It took $1.9751 to buy a pound in late trade in London and by early afternoon in New York it still took $1.9716 to buy a pound, while the UK currency hit a new record low versus the shared currency at 74.90p to the euro but traded at 74.88p to the euro just past midday in New York.

The yen gained on the US employment data as investors backed away from risky investments.

At nearly 1 p.m. in New York the yen traded at ¥61.831 to the Brazilian real and at ¥94.9292 to the Australian dollar for its biggest gains, while it was at ¥160.2800 to the euro and at ¥214.0465 to the pound.

The search for safe investments also benefited the Swiss franc, which traded at SFr1.1078 to the US dollar, at SFr1.6355 to the euro, and at SFr2.1841 to the pound.

Story link: USD declines as pound, yen see gains