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byline, dateline; previous LONDON)
* U.S. payrolls rise in November, but revised lower in Oct,
* Dollar index on track to lose this week after three-week
* Euro one-week implied volatility up before Italy vote
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 2 The dollar fell across the board
on Friday after posting gains the last three weeks as a solid,
but not spectacular, U.S. non-farm payrolls report spurred
doubts about the path of rate increases next year.
Analysts, however, said the dollar's weakness was just a
short-term correction, a much-needed one, after a strong rally
in the wake of Donald Trump's victory in the U.S. presidential
election on Nov. 8.
The dollar index was on track for its first weekly fall in
four weeks against a basket of currencies, but was still up more
than 2 percent for the year. The U.S. currency also slid against
the yen, hitting session lows after the jobs report, but was
nonetheless on pace to show gains for a fourth consecutive week.
Nonfarm payrolls increased by 178,000 jobs last month, but
data for September and October were revised to show that fewer
jobs created than previously reported.
"Overall, we think the results are good enough to meet the
Fed's low thresholds to hike rates later this month," said
Marvin Loh, global markets strategist at BNY Mellon in Boston.
"The results also indicate an economy moving along in a new
normal manner, which should be able to eke out a near 2 percent
growth rate for the full year, generally in line with the Fed's
But the report did not provide much clarity on the path of
future interest rate increases, he said.
"We think that there are enough yellow flags to support the
slow and shallow path endorsed by the Fed, which expected only 2
hikes this past September," Loh added.
In mid-morning trade, the dollar index fell 0.3 percent to
100.77. It was down 0.8 percent for the week. Against the
yen, the dollar fell 0.6 percent to 113.42 yen.
The euro, on the other hand, was little changed against the
dollar at $1.0661, ahead of the Italian referendum over
Sunday's Italian referendum could reject constitutional
reforms on which Prime Minister Matteo Renzi has staked his
Renzi's departure could destabilise Italy's fragile banking
system and be taken as another sign of rising anti-establishment
sentiment around the world, potentially eroding investor
confidence in the currency union.
Positions on the euro have largely been taken on options
markets this week, driving implied volatility of the currency -
which could pay off for speculators in either direction - to its
highest since Britain's June vote to leave the European Union.
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Patrick Graham in London; Editing by Chizu Nomiyama)