US dollar remains buoyant following US jobs report

[NEW YORK] The US dollar rose marginally against the euro, yen and British pound on Monday in largely tranquil currency markets.

The movements followed last week's encouraging employment numbers from the US Labor Department, likely to feed speculation of a US interest rate hike this year.

By 1800 GMT, the euro was down slightly at US$1.1081 versus US$1.1087 at 2100 GMT on Friday.

The US dollar also gained on the yen, rising to 102.49 yen from 101.79 on Friday, while the pound fell to US$1.3040 from US$1.3072.

The Labor Department reported Friday that the US economy had added 255,000 jobs in July, far outstripping analyst expectations.

"Signs the US economy is on track for stronger growth over the latter half of the year gave a shot in the arm to chances of the Federal Reserve raising interest rates by year-end," Western Union said in a currency market analysis.

"America's higher rate outlook is a boon for the dollar, particularly against peers in Japan and Europe whose borrowing rates are below zero."

AFP