FOREX-Dollar up vs euro, down vs yen after payrolls data
* Dollar rises vs euro, falls vs yen after jobs data
* ECB holds rates at 1.0 percent as expected
* China quells FX reserves speculation, supports dollar
(Adds comments, details)
By Vivianne Rodrigues
NEW YORK, July 2 (Reuters) - The dollar extended gains versus the euro and fell against the yen on Thursday after a report showed a larger-than-expected drop in U.S. non-farm payrolls in June, raising concerns about the pace of the economic recovery.
U.S. Treasury bonds rose and U.S. stock index futures extended losses after the data as risk aversion increased, helping the dollar's safe-haven appeal. Analysts said demand for the euro also fell after European Central Bank President Jean-Claude Trichet said euro-zone activity would likely remain weak for the rest of the year.
The ECB left interest rates at 1 percent as expected, and Trichet said stabilization in 2010 would be followed by a recovery. For details, see [ID:nL2512532].
"Certainly the (jobs) number is weaker-than-expected," said Vassili Serebriakov, a currency strategist at Wells Fargo Bank in New York. "The dollar was trading with a slightly firmer tone going into the number primarily due to weaker equity markets and data disappointments elsewhere." Continued...
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