Dollar rises on currency exchanges

The pound fell against the dollar on foreign exchanges today (December 4th), following better-than-expected US unemployment figures.

Sterling dropped from $1.665 to $1.655 on news that non-farm payrolls fell by 11,000 during November 2009.

Analysts polled by news agency Reuters suggested a likely increase of 130,000.

Figures for October 2009 were also adjusted downwards, from 190,000 net job losses to 110,000.

The news could signal that the US, which returned to economic growth in the third quarter according to official GDP figures, could be recovering more strongly from the recession than had previously been thought.

This in turn could boost prospects for UK emigrants to the US and the international payments sector.

The new non-farm payroll figures bring the overall rate of US unemployment down from 10.2 to ten per cent.

Stocks rose on the news, with the FTSE 100 0.5 per cent up on the day by mid-afternoon trading.

Posted by Tom Papworth