The dollar lost ground against the yen and euro on Thursday after U.S. unemployment data failed to reverse a downtrend that followed some of the biggest gains on record for China’s yuan.
A rise in overnight borrowing costs in Hong Kong and growth in China’s services sector to a 17-month high last month helped put the yuan on pace for the biggest two-day rise for the offshore version of its currency since its inception in 2010. CNH=
That in turn triggered a broader round of profit-taking on the dollar, sending it more than 1 percent lower against the yen and as low as $1.0575 per euro before a late-morning recovery in Europe. JPY= EUR=
U.S. jobless claims fell to a 43-year low last week, but that data was countered by a soft report from payrolls processor ADP showing employment gains were muted in December.
That put the dollar back on its lower trajectory after a brief stall following the release of the jobless claims figure.