Dollar gains on positive jobs data

Published: 20 Feb at 8 AM Tags: Euro, Dollar,

Upbeat jobless figures coming out of the US have helped lend support to the dollar. The data also makes it more likely the Federal Reserve will introduce an early interest rate hike. Meanwhile the euro remains under pressure ahead of a meeting to discuss a bailout package for Greece. The dollar index is up 0.2 per cent at 94.367.

A delay in a rates increase in the US was mooted earlier this week as minutes of a Fed meeting were published showing that policymakers were not keen on pushing for an early hike. A rise in US debt yields has also helped boost the greenback which is up from 118.42 yen to 118.89.

The euro has dropped from a high of $1.1450 to $1.1364 as analysts concentrate on Greece and the eurozone.

On 28 February the Greek bailout programme is due to come to an end. Germany has already refused a request for a six-month extension. However there is some optimism that a new deal will be reached as not coming to an agreement would cost both the eurozone and Greece dearly.

Although there is skepticism from Germany, and Greece has not said it will continue its austerity measures, the request for an extension is being seen by many as a positive sign.