LONDON: The euro surged close to a two-year dollar peak on Tuesday as weak US non-farm payrolls data stoked expectations that the Federal Reserve would not taper its stimulus until 2014.
Shortly after 1230 GMT, the euro spiked as high as $1.3748, hitting the highest level since November 2011. It later stood at $1.3735, up from $1.3681 late in New York on Monday.
The US economy generated fewer jobs than expected, 148,000, in September, the Labor Department revealed on Tuesday.
The jobless rate fell to 7.2 percent during the month, it added in a report that was delayed by three weeks due to the US government shutdown.
"The market has drawn even more conviction from the weaker-than-expected non-farm payrolls (NFP) data that the Fed will not be tapering the size of its monthly asset purchases until next year," Rabobank analyst Jane Foley told AFP.
"The dollar has been pushed even further onto the backfoot and this will lead to even further support for euro/dollar."
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