(RTTNews) - The euro continued its comeback versus the slumping dollar on Friday, bolstered by more evidence that the US economy is in the doldrums.
Today's long awaited US jobs report confirmed that the nation's jobs market remains exceedingly week -- bad news for an economy suffering a prolonged housing downturn and fading manufacturing recovery.
With governments around the world, including the US, under pressure to cut budgets rather than fund stimulus measures, the global economic recovery remains in doubt.
The dollar was punished this week, giving back a portion of its 2010 gains against the euro and sterling. Debt problems in the UK and Euro area are now seen as being less sever than initially thought, helping the two currencies fight back against the greenback.
The euro jumped to 1.2610 versus the dollar, its highest level since May 10. The advance took the euro further away from a 4-year low of 1.1805 set a month ago.
The euro also firmed versus the sterling, rising to a 2-week high of 0.8295 after hitting a year and a half low of 0.8067 earlier this week.
The single currency rallied to 110.50 versus the yen, away from an 8-year low of 107.30.
The Eurozone jobless rate was stable at 10% in May, European Union statistical office Eurostat said Friday. Economists had forecast a rate of 10.1%. The statistical office revised April's rate to 10% from 10.1% reported initially. The rate was 9.4% in May 2009.
Meanwhile, US employment showed a notable decrease in the month of June, according to a report released by the Labor Department on Friday.
The report showed that non-farm payroll employment fell by 125,000 jobs in June following an upwardly revised increase of 433,000 jobs in May.
