(RTTNews) - The euro extended its weekly losses versus other major currencies on Friday, amid concerns that inflation will derail a tenuous euro zone recovery. Risk averse traders also shied away from the euro after another dreadful U.S. jobs report.
Anemic private sector job growth was offset by a drop in government jobs to produce essentially no job growth in the U.S. economy in August, according to figures released Friday by the Labor Department.
The total non-farm payroll level for August showed that there were no new jobs created for the month, while the unemployment rate held steady at 9.1 percent.
The euro managed to steady versus the dollar, but a rally away from this morning's 3-week low of $1.4207 ran out of steam at around $1.4280.
Steep early losses took the euro to CHF 1.10 versus the Swiss franc, its lowest since a relief rally that took place in mid-August. After hitting a record low near parity about a month ago, the euro snapped back to near CHF 1.20, but has since given back half of that advance.
Analysts say that Swiss authorities may begin a bold intervention in the currency markets to weaken the franc, but traders seem to be betting that action is unlikely at the CHF 1.10 level.
The euro slipped to Y109.25 versus the yen, and to GBP 0.8780 versus the sterling.
Lifted by rising energy prices, Eurozone producer price inflation accelerated in July as expected. However, core inflation stabilized, after slowing in the preceding few months, easing the concern over the underlying price pressure in the economy.
Producer prices grew at a pace of 6.1 percent in July from a year ago, data from Eurostat showed Friday. The increase was bigger than the 5.9 percent rise logged for June. The annual increase matched economists' expectations.
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