The US dollar fell today against the Japanese yen to the lowest levels since 1995 as the nonfarm payrolls report was far worse than expected. The currency also fell versus the Great Britain pound and was declining versus the euro before rebounding and closing near the opening level.
The nonfarm payrolls dropped 95,000 in September, following the 57,000 decline in July. The analysts expected the 1,000 growth. The nonfarm payrolls dropped remained at the same 9.6 percent level. The payrolls report added just one more reason for the Federal Reserve to perform the quantitative easing.
As the talks about the quantitative easing intensified the stocks rallied, driving the Dow Jones Industrial Average above 11,000, the highest level since May. Gold also gained, following the advance to $1,366 per ounce yesterday, and may rise further on the speculation the demand increase for the precious metal as the alternative to the dollar.
USD/JPY closed at 82.0 after opening at 82.39 and falling to 81.74, dropping for the first time since 1995 below the 82.00 level. GBP/JPY closed at 1.5955 after it opened at 1.5874 and dropped to the intraday low of 1.5822. EUR/USD closed at 1.3928, near its opening level of 1.3925, after rising to 1.3982 and falling as low as 1.3834.
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