The 17-nation euro dropped against the U.S. dollar on May 4, as the sentiment of traders participating in fx risk management was affected by a jobs report that indicated lower-than-expected growth in new positions.
The common currency declined to as low as $1.3078, which was its lowest value versus the greenback since April 19, according to The Associated Press.
The Labor Department report, which indicated that the U.S. economy created 115,000 jobs in April, was below the median forecast of 160,000 that was provided by a Bloomberg News survey of economists.
"It’s a weaker report overall," David Mann, regional head of research for the Americas at Standard Chartered Plc, told the media outlet. "It’s not weak enough to make the market convinced that quantitative easing is coming soon. There’s not yet enough confidence of that, but it’s starting to raise a few more concerns."
Corporate risk managers need to monitor changes in currencies such as the euro if they wish to minimize the impact of changing foreign exchange rates on financial performance. Foreign exchange technology can provide the decision makers with the real-time currency data they need.
