Dollar gains on euro amid Greek woes

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New York - The euro sagged against the dollar on Thursday as the revised Greek bailout took a hit from a court ruling and ahead of fresh data on the US jobs sector, which has been the focus of the Federal Reserve's policy.

Trade was quiet with much of Europe observing the All Saints Day holiday and with traders on edge ahead of the looming US data release and the presidential election coming next Tuesday.

At 21h00 GMT the euro was at $1.2940, down from $1.2958 late on Wednesday.

The yen moved lower, the euro buying 103.69 yen compared with 103.39, and the dollar at 80.13 yen, up from 79.78 on Wednesday.

Fresh turmoil over Greece helped push the euro lower, traders said.

A court ruled that cuts in pensions and salaries for state employees that the Greek government has planned in order to unlock critical bailout funds were unconstitutional.

That injected a new problem into the already troubled talks between Athens and its official creditors the International Monetary Fund, the European Union and the European Central Bank.

“All of the issues in Greece created a selloff in the final hours of European trade, following a rally spurred on by the US employment figures,” said GFT's Neil Gilbert, referring to two minor reports suggesting improvement in the jobs market.

He said much depends on the release Friday of data on jobs created and unemployment in October.

The release “will be one of the most watched economic releases in recent history”, he said - the final employment report before Americans head to polling stations to decide if Barack Obama deserves another four years in the White House.

While it could shape voters' opinions, it is less likely to be a pointer for Fed policy. The jobless rate, 7.8 percent in September, is likely to remain close to that and the number of jobs created expected to remain modest.

In other currencies, the dollar rose slightly to 0.9318 Swiss francs, while the British pound was nearly flat at $1.6124. - Sapa-AFP


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