Dollar rises against euro after weak jobs report

AP News
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Posted: May 04, 2012 3:42 PM
Dollar rises against euro after weak jobs report

The dollar rose to a two-week high against the euro after the U.S. government reported that hiring slowed in April.

Concerns that the economic recovery is weakening also pushed traders to buy yen, sending the Japanese currency to a two-month high against the dollar.

The Labor Department said Friday that the economy added just 115,000 jobs in April. Economists had expected a gain of 163,000.

The unemployment rate fell to 8.1 percent in April from 8.2 percent in March, but mostly because more people gave up looking for work.

Traders tend to buy the dollar and the yen, two currencies they consider safe havens, when they are concerned that the economy is slowing.

The euro fell to $1.3089 in late trading Friday from $1.3151. The euro fell as low as $1.3078, its lowest point against the dollar since April 19.

Also weighing on the euro are key elections in France and Greece coming up this weekend. A change in leadership in France could alter the way Europe deals with its ongoing debt crisis.

The dollar fell to 79.87 Japanese yen from 80.29 yen. Earlier, the dollar fell to 79.56 Japanese yen, its lowest point against the yen since Feb. 21.

The dollar strengthened against most other currencies Friday. The British pound fell to $1.6147 from $1.6181. The dollar rose to 0.9177 Swiss franc from 0.9135 and to 99.56 Canadian cents from 98.87 Canadian cents.

The U.S. currency also rose against the Australian and New Zealand dollar, the Norwegian krone, the Hong Kong dollar and the Mexican peso.