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Dollar Bounces Back After Weak August Jobs Report


09-09-2014

NEW YORK: The dollar rallied Monday against other major currencies as investors concluded the US economy is still better positioned than other leading economies despite Friday's weak jobs report.

The dollar rose to a five-year high against the Japanese yen and a 14-month high versus the euro, according to Kathy Lien, managing director at BK Asset Management.

The dollar's gains on the British pound were also significant after a poll showed rising support in Scotland for a referendum to separate from the United Kingdom.

"Although we don't have much in the way of market moving US data in the front of the week, the US maintains economic and monetary policy superiority over many countries and for this reason, the dollar remains one of the most attractive investments," Lien wrote.

Monday's gains for the dollar were a comeback after the greenback dropped Friday following a Labor Department report that showed the US added just 142,000 net new positions in August.

The dollar's latest rise "falls less to the dollar's own intrinsic merits and more to the exceptional weakness of its counterparts," said John Kicklighter, chief currency strategist at DailyFX.


The euro has been weakened by aggressive stimulus, while the British pound has dipped in part due to the Scottish referendum fallout, Kicklighter said.
brecorder.com

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