Dollar slips after jobs report

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- The dollar turned lower against major rivals Friday as investors digested the government's June employment report that showed a loss in jobs.

What prices are doing: The dollar fell 0.25% against the euro to $1.2550 and dropped 0.09% against the pound to $1.5197.

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The greenback edged down 0.2%against the Japanese yen to ¥87.79.

What's moving the market: The Labor Department said that payrolls shed 125,000 jobs in June, but the unemployment rate fell to 9.5%, the lowest since June 2009. The rate fell despite the job losses because so many discouraged job seekers have stopped looking for work.

Economists expected the economy to lose 100,000 jobs during the month, as the Census Bureau cut the temporary workers it had brought on to conduct the decennial U.S. population count. The unemployment rate was forecast to tick higher to 9.8% in June from 9.7% the previous month.

What analysts are saying: The dollar could benefit as a safe haven asset if investors remain jittery about the ongoing headwinds for the economy in the second half of the year, said Neil Mellor, currency strategist at Bank of New York Mellon in London.

"Countries are starting to tighten their monetary policies, but those countries are still swamped in private sector debt and that will pose substantial pressure on risk appetite, which would push the dollar higher," he said. To top of page

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