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U.S. Dollar Moves Sharply Lower Following Jobs Data

The value of the U.S. dollar has shown a significant move to the downside during trading on Friday, extending the sharp pullback seen on Thursday.

The U.S. dollar index has tumbled 1.03 points or 1.0 percent or 105.09, falling to its lowest levels in well over a month.

Currently, the greenback is trading at 149.39 yen versus the 150.45 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0728 compared to yesterday’s $1.0622.

The steep drop by the value of the U.S. comes following the release of a Labor Department report showing U.S. employment rose by less than expected in the month of October.

The closely watched report said employment climbed by 150,000 jobs in October after jumping by a downwardly revised 297,000 jobs in September.

Economists had expected employment to increase by 180,000 jobs compared to the surge of 336,000 jobs originally reported for the previous month.

The Labor Department also said the unemployment rate crept up to 3.9 percent in October from 3.8 percent in September. The unemployment rate was expected to remain unchanged.

The data has added to optimism the Federal Reserve is done raising interest rates after the central bank left rates unchanged for the third time in four meetings earlier this week.

A separate report released by the Institute for Supply Management showed a bigger than expected slowdown in the pace of growth in U.S. service sector activity in the month of October.

The ISM said its services PMI fell to 51.8 in October from 53.6 in September, although a reading above 50 still indicates growth. Economists had expected the index to edge down to 53.0.

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