The US Dollar has rallied against the Pound and has made gains against most of its most traded peers including the Japanese Yen, as the latest US jobs data fuels speculation over whether the Federal Reserve will maintain its monetary easing programme.
According to the US Labour Department, US employers added 175,000 jobs to the economy in May, a figure that beat economist forecasts of a rise of 170,000 jobs. The nation’s overall unemployment rate ticked up by a tenth of a percentage point to 7.6%. That rise in reality is a good thing as it was driven by more workers entering the workforce.
Despite the improving state of the world’s biggest economy May marked the third month in a row that non-farm payrolls failed to rise by more than 200,000 a figure regarded y economists as one of the key points needed for the Federal Reserve to cut down its monetary easing programme. The latest figures mean that it appears unlikely that the Fed is about to rein in the bond-buying programme, which is aimed at lowering interest rates and boosting employment.
“What’s made it a good number is the fact that it’s not extreme on either side, and gives the prospect that investors are looking for, which is a continued slow recovery without any likelihood of any rapid rate rise by the federal government,” said Rick Meckler, president of Liberty View Capital Management in New Jersey.
The not quite stellar figure released today will be a good thing for emerging currencies such as the Rand and Rupee, two currencies that have benefitted from the Federal Reserve’s policy. With a scale down not likely in the near term investors will probably turn their attention back to the higher yielding currencies.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6419
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7559
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0536
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 96.4628
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0270
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5578
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3229
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9490
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9737
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7956
(Correct as of 14:20 pm GMT)
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