Dollar up after positive US jobs data

The dollar was the highest it has been for three weeks against the euro on Monday following positive employment statistics from the USA. The figures, which suggest America may not need any further help from the Federal Reserve, came as Greece’s bond swap deals are put in place to clear the way for a new bailout.

The euro slipped to $1.3095, down 0.2 per cent, and at one point dropped to $1.3085, its lowest level since February 16. In a 50 per cent retracement of its rally seen from January to February, the common currency could find support around $1.3085.

Head of global foreign exchange for Hong Kong’s Credit Agricole, Mitul Kotecha told Reuters that the two currencies would sustain a move below $1.31 due to worries in the eurozone about the Greek bailout. He added that there are too many uncertainties and negative feelings in the market to see much lift of the euro.

The dollar hit 80.104, a three week high as it edged up against other major currencies after positive jobs data was released by the US on Friday. In a sign that the troubled economy could be improving, results showed that more than 200,000 people had been given jobs in February for the third month in a row.

Greg Gibbs, a strategist for the Royal Bank of Scotland in Sydney, told Reuters that such news supports the greenback. According to a survey conducted by the news agency before Friday’s announcement, major Wall Street firms have been considering whether or not the Fed needs to apply further monetary stimulus as the economic situation continues to improve.