USD weaker ahead of jobs report

The US dollar was weaker Monday, hurt by the possibility that an upcoming Labor Department report will say that 60,000 more jobs were lost in June, as well as by manufacturing data that showed activity still contracting in some regions of the country, although it contracted less quickly in June in some areas during the month.

At just past noon in New York, the dollar traded at $1.5738 to the euro while it took ¥106.2200 to buy a greenback.

The yen, besides gaining on the US dollar, strengthened versus the euro after Moody’s Investors Service raised Japan’s local-currency debt rating to Aa3, up one level, allowing the yen to trade at ¥167.1690 to the shared currency.

Meanwhile, the Swiss franc gained on the US dollar and the euro on speculation that central banks will add more francs to their reserves and on the possibility that the Swiss National Bank will raise interest rates soon to fight inflation.

In midday trade in New York, the Swiss franc traded at SFr1.0213 to the US dollar and at SFr1.6072 to the euro.

The Australian dollar also strengthened versus the greenback on reports that commodities exports, particularly iron ore and coal, are breaking records, with the Aussie worth 95.68 cents US at around noon in New York.

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