The US dollar fell hard against most major counterparts after being hurt by the disappointing nonfarm payrolls report, while the yen strengthened after being bought in a risk-off market.
During today’s Asian session, markets were mainly digesting the data from the September jobs report which showed a lower than expected job creation of 148,000 against expectations of a 185,000 jobs increase.
The weak data raises concern about the recovery of the US labor market and raises speculation that the Federal Reserve will not likely scale back any stimulus until after Marc h 2014.
The current stimulus plan of the Fed involves bond buying which tends to be negative for the dollar. As a result, the dollar was sold off sharply and gold rallied. Gold and USD tend to have an inverse relationship.
The dollar fell 0.8 percent versus yen to 97.35 while against euro, the dollar hit the weakest since November 2011 at 1.3793. Euro fell against yen to 134.08, down 0.9 percent.