The dollar fell on Friday ahead of the US non-farm payrolls report later in the day, which may test the strength of the US economic recovery, but with the Federal Reserve committed to fighting inflation, strategists believe that any decline in the value of Currency will not continue.
The euro and the pound sterling compensated for losses last night and rose for the first time in three sessions, while the Japanese yen returned to rise following another breach of the key 145 level once morest the dollar.
A number of Federal Reserve officials supported the view that the central bank has not finished raising interest rates as it seeks to rein in inflation, and rates are expected to rise further.
And the euro rose in the latest trading today, 0.1 percent to 0.9801 percent once morest the dollar.
The British pound rose 0.3 percent to $1.1192, following falling 1.4 percent overnight. It had risen to as much as 1.1493 once morest the dollar earlier in the week following the British government backed down on a scheduled cut for the highest income tax bracket.
The US dollar index fell 0.1 percent to 112.11 points, following rising by regarding one percent last night, and is heading towards a decline of 0.16 percent this week.
Attention now turns to the US Non-Farm Payrolls report, which is expected to be released on Friday at 1230 GMT.
Economists expect 250,000 jobs added last month, compared to 315,000 in August.
The yen rose in the latest trading today, 0.2 percent to 144.91 once morest the dollar, to approach its lowest level in 24 years at 145.90, which was recorded last month, prompting the Japanese authorities to intervene to support the fragile currency.
(Archyde.com)
