Dollar Falls, Treasuries Advance After U.S. Employers Cut Jobs

The U.S. dollar fell and Treasuries rose after American employers unexpectedly eliminated jobs last month, spurring concern the economic recovery will falter. U.S. stocks rallied on optimism about corporate profits.

The Dollar Index, a gauge of the U.S. currency versus those of six major trading partners, declined 0.6 percent to 77.485 at 5:13 p.m. in New York. Treasury two-year notes advanced, driving their yield down 0.05 percentage point to 0.97 percent. The Standard & Poor’s 500 Index added 0.3 percent, recovering from a 0.5 percent drop, as United Parcel Service Inc. said profit beat its forecast and Alcoa Inc. climbed to the highest price since October 2008 before reporting quarterly results on Jan. 11. (more)