* U.S. economy loses 701,00 jobs in March
* Dollar index gains nearly 2.3% for the week
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, April 3 (Reuters) - The dollar firmed against major currencies for a third straight day on
Friday, as investors took shelter in the U.S. currency amid worsening economic fallout from the
coronavirus outbreak.
"As we see poor data coming in from Europe, UK, Italy, if you're trying to be rushing anywhere, it
would be U.S. Treasuries and the U.S. dollar as a safe haven," said John Doyle, vice president of dealing
and trading at Tempus Inc in Washington.
The dollar largely shrugged off the U.S. non-farm payrolls report that showed massive job losses of
701,000 last month, compared with expectations of 100,000 lost jobs.
March's contraction abruptly ended a historic 113 straight months of employment growth. The Labor
Department also revised February's number upward to 275,000 job gains. The unemployment rate rose to 4.4%
from 3.5% the previous month. "The plunge in non-farm payrolls in March, which is already close to the worst monthly declines during
the global financial crisis, suggests the coronavirus pandemic started to decimate the economy even sooner
than we thought," said Andrew Hunter, senior U.S. economist at Capital Economics.
The non-farm payrolls report followed Thursday's data showing initial claims for U.S. unemployment
benefits rose to 6.65 million in the latest week from an unrevised 3.3 million the previous week.
In afternoon trading, the U.S. dollar index was up 0.4% at 100.61 =USD . The index posted a 2.3% gain
on the week, having whipsawed last month from highs on a scramble for cash before slumping as the U.S.
Federal Reserve flooded the market with liquidity.
The euro was down 0.4% against the dollar at $1.0810 EUR=EBS , on pace for a 2.9% weekly loss.
Indecision among euro zone governments about a rescue package for the region's hobbled economies has
weakened the euro in recent days.
The Japanese yen, Swiss franc, sterling, as well asthe Australian and New Zealand dollars all lost
ground as the dollar strengthened across the board. JPY=EBS CHF=EBS GBP=D3 AUD=D3 NZD=D3 .
The dollar was last up 0.5% at 108.42 yen.
As lockdowns continue, the economic impact of the epidemic is becoming more marked, with purchasing
managers' indexes across the euro zone and Britain on Friday showing a slump in business activity.
"The complication is that while all the things that the governments have done are very positive,
they're like extra welfare payments and they can't do anything more than that," said Adrian Lee, president
and chief investment officer at active currency manager Adrian Lee & Partners.
"When we do come out of lockdowns, everybody will be desynchronized. China comes out first, then Italy
comes out. But the world is so interconnected. It's not great when you can work in the U.S., but you can't
visit London."
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Currency bid prices at 4:08PM (2008 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0811 $1.0856 -0.41% -3.56% +1.0864 +1.0774
Dollar/Yen JPY= 108.4300 107.9000 +0.49% -0.40% +108.6700 +107.8100
Euro/Yen EURJPY= 117.24 117.13 +0.09% -3.86% +117.3800 +116.7400
Dollar/Swiss CHF= 0.9763 0.9736 +0.28% +0.88% +0.9795 +0.9729
Sterling/Dollar GBP= 1.2265 1.2392 -1.02% -7.50% +1.2410 +1.2208
Dollar/Canadian CAD= 1.4153 1.4131 +0.16% +8.99% +1.4224 +1.4095
Australian/Doll AUD= 0.5993 0.6059 -1.09% -14.64% +0.6075 +0.5981
ar
Euro/Swiss EURCHF= 1.0556 1.0566 -0.09% -2.73% +1.0577 +1.0544
Euro/Sterling EURGBP= 0.8812 0.8754 +0.66% +4.23% +0.8836 +0.8742
NZ NZD= 0.5860 0.5916 -0.95% -13.00% +0.5922 +0.5844
Dollar/Dollar
Dollar/Norway NOK= 10.5746 10.3582 +2.09% +20.47% +10.6495 +10.3830
Euro/Norway EURNOK= 11.4550 11.2798 +1.55% +16.44% +11.4875 +11.2306
Dollar/Sweden SEK= 10.1758 10.0744 +0.26% +8.86% +10.1983 +10.0928
Euro/Sweden EURSEK= 11.0050 10.9769 +0.26% +5.12% +11.0099 +10.9250
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Global foreign exchange rates https://tmsnrt.rs/2RBWI5E
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