Dollar rises as U.S. unemployment jumps above 10%

The dollar rose against most major currencies on Friday as safety-haven demand for the U.S. currency was boosted by high employment rate.

The unemployment rate rose from 9.8 to 10.2 percent in October, the U.S. Bureau of Labor Statistics reported. It was the first time the unemployment surpassing 10 percent in 26 years. Most analysts have forecasted a slighter increase to 9.9 percent.

Nonfarm payroll employment continued to decline by 190,000 in October, the smallest decline since August 2008. The largest job losses over the month were in construction, manufacturing, and retail trade.

There were positive signs in the first significant increase in temporary employment in this cycle, and an increase in manufacturing overtime. Combined August and September job losses were 91,000 less than previously estimated.

The underlying rate of decline in employment is still slowing, but we are several months away from hitting bottom, said analysts of Global Insight.

Since the start of the recession in December 2007, the number of unemployed persons has risen by 8.2 million, and the unemployment rate has grown by 5.3 percentage points.

The report reinforced speculations that the U.S. Federal Reserve will keep interest rates at their current near-zero range into late next year.

The euro bought 1.4835 dollars in late New York trading compared with 1.4868 dollars it bought late Thursday. The pound rose to 1.6602 dollars from 1.6586 dollars.

The dollar rose to 1.0768 Canadian dollars from 1.0648 Canadian dollars, and rose to 1.0179 Swiss francs from 1.0165 Swiss francs. It fell to 89.93 Japanese yen from 90.78 Japanese yen.

Source: Xinhua