Dollar Rises Versus Euro

The dollar rose against the euro as a government report showed employers in the U.S. eliminated fewer jobs last month than analysts forecast, indicating the economy may be weathering the housing slump.

The euro fell against the dollar as German retail sales dropped in June more than twice what economists forecast, undermining the case for the European Central Bank to boost interest rates again this year. Oil prices declined.

The dollar rose 0.4 percent to $1.5542 per euro at 9:01 a.m. in New York, from $1.5603 yesterday. It was headed for a 1.1 percent weekly gain, the biggest since mid-June. The dollar dropped 0.2 percent to 107.70 yen, from 107.91. The euro decreased 0.6 percent to 167.37 yen, from 168.39 yen.

U.S. payrolls shrank by 51,000 last month, following a decline of a revised 51,000 in June, the Labor Department said today in Washington. The median forecast of 79 economists surveyed by Bloomberg News was for a reduction of 75,000. The unemployment rate rose to 5.7 percent, from 5.5 percent.

Dollar Rises Versus Euro, Bloomberg
8/1/2008 7:05:24 AM