The U.S. dollar rose on Friday after data showed the world’s largest economy lost fewer jobs than expected last month on fallout from the coronavirus pandemic, Reuetrs reported.
The greenback was on track to post its largest weekly gain versus the euro in more than a month, although that was more related to the European single currency concerning the European Central Bank’s asset purchases.
The dollar was also on track for its best weekly performance against the Swiss franc.
Friday’s data showed U.S. job losses in April hit 20.5 million, compared to expectations of 22 million. The unemployment rate was 14.7 percent, lower than the market forecast of 16 percent.
“This economic skid is so severe, does it really make much of a difference between a 20.5 million jobs lost and 22 million?” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. “It doesn’t really change anything. The market has rightly shrugged it off,” he added.
In mid-morning trading, the dollar rose 0.3 percent against the yen to 106.57 yen, while the euro was flat against the dollar to $1.0827.
The dollar index, as a result, was up 0.1 percent at 99.824.
Risk appetite was broadly higher on the day, with U.S. stocks and Treasury yields higher.
“These (jobs) numbers happened quickly, it was a result of government shutdowns, not because of a prolonged 12 years of depression,” said Quincy Krosby, chief market strategist at Prudential Financial, in New Jersey.
“To counter that, it is important to see the attempt to open the economy and that is what the market is focused on, as opposed to the dismal implications of these numbers,” Krosby added.