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Dollar Climbs on Job Growth

The yen and the euro are weaker.

The greenback went soaring early Friday after traders took a favorable view of the government's latest employment report.

However, the euro was clawing back some of its losses after economists dug into the details.

Euros were recently selling for $1.4076, down from $1.4136 late Thursday. The British pound was buying $2.0343, down from $2.0383 a day earlier.

The Labor Department reported better-than-expected jobs growth for September and revised figures for the prior two months substantially upward.

That news sent the value of the euro down to an intrasession low of $1.405 as traders initially interpreted the news as bullish for the U.S. economy. But shortly thereafter, economists warned that all was not what it had first seemed.

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"If you look at the details, the upward revision is in part due to a revision to government employment figures," Meg Browne, senior currency strategist at Brown Brothers Harriman in New York. "This is important because it reflects teachers returning to work, and it suggests that in the private sector there is softness in employment."

Such weak private sector jobs growth is indicative of a slowing economy and may pave the way for further interest rate cuts by the

Federal Reserve

later this year. That would make the U.S. currency less attractive to yield-seeking investors.

Elsewhere, the dollar was gaining on the Japanese yen, with one dollar buying 116.78 yen vs. 116.51 yen previously.