Sunday, January 08, 2006

U.S. Dollar Falls vs. Major Currencies

The dollar ended its recent losing streak against the South Korean won, rising Friday for the first session in six to close slightly stronger at 988.1 won. The won dropped after South Korean Vice Minister of Finance and Economy Kwon Tae-shin said that recent won strength against the dollar "cannot be seen as normal" and that the government will use all possible tools to stabilize the exchange rate.

U.S. non-farm payroll figures due Friday had been expected to show robust expansion, with economists estimating that they would show employers adding about 200,000 jobs in December.

However, the Labor Department reported that employers expanded payrolls by only 108,000, a big drop from the 305,000 jobs added in November.

After falling earlier this week on expectations that a string of interest rate hikes by the U.S. Federal Reserve will soon end, the dollar had been helped on Thursday by reports showing faster growth in the services industry and falling jobless claims.

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