Futures Market News
Greenback weakens after disappointing August jobs report
Sep 07, 2012 03:06 PM
Friday saw the value of the U.S. dollar tick downward against counterpart currencies after the U.S. Department of Labor issued an underwhelming employment report for the month of August, according to Reuters.
Despite expectations for 125,000 new jobs created, payrolls grew by only 96,000 last month. That augmented speculation that the U.S. Federal Reserve is more likely to implement a third round of asset purchases to spur the globe's largest economic system, which reduces the value of the monetary unit.
The Associated Press reports deputy chief economist Beata Caranci with TD Economics said the weaker jobs report provides the perfect "ammunition" for the U.S. Federal Reserve to move forward with that third round of purchasing debt. She also said that job hunting in the weeks and months anon is likely to be daunting.
Though the job-creation figure was disappointing, the unemployment rate in the U.S. fell from 8.3 percent in July to 8.1 percent in August.
The underemployment rate, a gauge that includes job hunters who have ceased looking for work, dropped to 14.7 percent in August from 15 percent in July, according to The Associated Press.
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