Dubai : The US Labour Department said on Friday that the economy lost 36,000 jobs in February, leaving the unemployment rate unchanged at 9.7 per cent.

Analysts polled by Reuters expected 50,000 job cuts and a 9.8 per cent jobless rate. The dollar soared against the yen on the back of the positive US data, boosting hopes a US economic recovery was still on track.

The dollar rose as high as 90.58 yen (Dh3.69), the strongest level in more than a week, according to Reuters data.

President Barack Obama, whose approval ratings have dropped partly because of high unemployment, said the figures showed measures his administration took to boost the economy were working but that unemployment was still too high.

Euro

The euro lost ground against the dollar, after European Central Bank President Jean-Claude Trichet left rates at one per cent on Thursday and stuck to his view that euro zone economic recovery would be uneven and fragile. Though the ECB took a small step toward unwinding some extraordinary support for the economy, it left much of its cash buffer for banks in place.

The ECB said it would return next month to competitive tenders for three-month loans for banks, a sign it is more comfortable with money market conditions. It balanced the move by extending unlimited funds at flat rates until October, longer than most analysts had expected.

Range for previous week: $1.3432 — $1.3736 (Dh4.9335 — Dh5.0452)

Range for this week: $1.3532 — $1.3800 (Dh4.9703 — Dh5.0687)

Sterling

Sterling turned slightly higher on the day against the dollar, hitting a session high of $1.5136 after the Bank of England left interest rates at 0.5 per cent and held action on its quantitative easing programme.

This was as expected, but analysts said there was relief among some investors that the bank did not expand quantitative easing. Sterling tumbled to a 10-month low against the dollar last week as concerns over the UK's record fiscal deficit escalated.

Range for previous week: $1.4780 — $1.5166 (Dh5.4286 — Dh5.5704)

Range for this week: $1.4850 — $1.5020 (Dh5.4544 — Dh5.5168)

Yen

The yen lost ground on Friday as the Japanese government said it was raising its borrowing limit for foreign exchange intervention for the first time in six years, sparking speculation that it was gearing up to step in and stem the recent rise in the yen.

Furthermore, Friday's stronger-than-expected US jobs report also weighed on haven demand for the yen. The yen fell 1.7 per cent to the dollar to 90.58 yen, the strongest level in more than a week. The dollar is up 1.7 per cent against the yen last week.

Range for previous week: 88.10 yen — 90.58 yen (Dh0.04169 — Dh0.04054)

Range for this week: 89.50 yen — 92.50 yen (Dh0.03971 — Dh0.04104)

— HSBC Global Markets Middle East