Dubai: Friday's weak US non-farm payrolls data dashed all hopes of an end to the cycle of US job losses, dragging the dollar lower. US employers cut 85,000 jobs in December. Although the dollar was well supported in the days ahead of the data on upbeat expectations, it fell 0.4 per cent against the euro and lost 0.7 per cent against the yen after the announcement.
Euro
Over the week, the euro was higher versus the dollar backed by positive data from the euro zone purchasing managers' survey which confirmed the region's manufacturing sector expanded at its fastest rate in 21 months in December. The Eurostat confirmed its earlier estimate that the euro zone exited recession in the third quarter.
Range for previous week: $1.4255-$1.4439 (Dh5.2358-Dh5.3034). Range for this week: $1.4300-$1.4600 (Dh5.2524-Dh5.3626)
Sterling
The pound was supported by the weak US data on Friday and stronger than expected UK producer prices data. Sterling added 1 per cent against the dollar on the week but lost 1.3 per cent against the euro. Sterling regained some of its recent losses after an opinion poll suggested the opposition Conservative party could win a majority in the coming general election.
Range for previous week: $1.5892-$1.6240 (Dh5.8371-Dh5.9650). Range for this week: $1.5900-$1.6400 (Dh5.8400-Dh6.0237
Yen
Against the yen, the dollar briefly dipped after Japan's new finance minister, Naoto Kan, backed off his call for a weaker yen on Friday, saying currency levels should be determined by markets. Kan said many Japanese firms were in favour of dollar/yen around 95 yen.
The dollar edged down 0.2 per cent from late US trade after rising as high as 93.78 yen, its strongest level since late August.
Range for previous week: 91.23 yen-93.76 yen (Dh0.04032-Dh0.03917). Range for this week: 92.00 yen-95.00 yen (Dh0.03998-Dh0.03866).
— HSBC Global Markets Middle East
