Dollar dips after U.S. data shows jobs growth

The dollar backed away from early gains and declined against other major currencies on Friday even though U.S. data showed solid jobs gains for a second straight month.

In trading after the March jobs report, which eases the way for the U.S. Federal Reserve to wind up its bond-buying program, the dollar index was off about 0.06 percent near 80.43.

The greenback was down 0.13 percent against the euro at $1.37 and down 0.14 percent against the at 103.75 yen after hitting a session high of 104.12 yen in trading immediately after the employment reports.


U.S. nonfarm payrolls increased by 192,000 jobs last month after rising 197,000 in February, the Labor Department said. The unemployment rate was unchanged at 6.7 percent, as Americans flooded the labor market.

Economists polled by Reuters had expected employment to increase by 200,000 last month and the unemployment rate to fall one-tenth of a percentage point.

Some traders hoping the jobs data would be more robust were disappointed, though the report will likely encourage the Fed to continue reducing its massive monetary stimulus, a process known as tapering, according to Anthony Valeri, investment strategist at LPL Financial in San Diego.

Euro Setback

On Thursday the euro had hit a one-month low against the dollar after ECB President Mario Draghi said the Governing Council was unanimous in its commitment to also using "unconventional instruments within its mandate in order to cope effectively with risks of a too-prolonged period of low inflation."

Unconventional instruments include quantitative easing—essentially, printing of money to buy assets. Some euro zone central bankers considered such measures highly undesirable until now.

The growth-sensitive got a boost after the U.S. jobs report to almost $0.93 for a gain for the day of 0.55 percent.