Dollar falls as US unemployment drops - but not enough

Emma Haslett
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The economy has added 2.285m jobs so far this year (Source: Getty)

The dollar wobbled, then fell 0.15 per cent against the pound after the US announced weaker-than-expected jobs growth.

Non-farm payroll figures published by the US' Bureau of Labor Statistics today showed the country added 214,000 jobs in September, a drop from September's 256,000 and way below expectations of 235,000.

Unemployment fell to 5.8 per cent, from September's 5.9 per cent.

Despite missing expectations, analyst consensus was that the figures provided encouragement. Chris Williamson, Markit's chief economist, said "anyone disappointed" by the figure "needs to bear in mind that... so far this year, the economy has added some 2.285m jobs".

The sustained impressive rate of job creation has corresponded with a strong run of economic growth, which looks to have persisted into the fourth quarter, albeit with some signs of the pace of expansion easing.
However, the figure will add to fears the US Federal Reserve is coming closer to becoming the first central bank to raise interest rates. Although lacklustre wage growth has holding back the Federal Open Markets Committee (FOMC) from taking any decisive action for now, if recovery continues so strongly, a rise might come sooner, rather than later.

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