Dollar sets low against euro, rebounds

The dollar briefly fell to a record low against the euro Friday after data showed U.S. job cuts rose to the biggest monthly number in five years.
But the greenback regained lost ground and was trading higher against the euro by late afternoon as traders pondered the Federal Reserve's announcement that it would provide more cash to banks that need it.
The U.S. Labor Department said American employers cut 63,000 jobs in February -- the starkest sign yet that the U.S. is heading toward a recession or has entered one already.
Those fears pushed the 15-nation euro as high as $1.5463. It was the latest in a string of all-time highs but the surge was cut short as the focus shifted to a Fed announcement that it would boost the size of auctions planned for March 10 and March 24 to $50 billion each.
That amount is up from the $30 billion limits it had previously unveiled. The auctions serve as short-term loans to get banks the cash they need to keep lending to their customers.
That pushed the euro down to $1.5335 in late afternoon New York trading -- below the $1.5365 it bought late Thursday.
European businesses say they are starting to feel the pinch, notably from U.S.-based buyers who assert that the high euro makes European goods more expensive.
Also Friday, the British pound traded above the $2 mark for a second day, buying $2.0173 -- above the $2.0092 it bought the previous day. It had jumped Thursday after the Bank of England kept its key interest rate unchanged at 5.25 percent.
The dollar fell as low as 101.40 Japanese yen, near a three-year low, before it recovered to 103.09 yen in late New York trading, unchanged from late Thursday.
In other New York trading, the dollar rose to 1.0175 Canadian dollars from 1.0144 Canadian dollars Thursday, but slipped to 1.0249 Swiss francs from 1.0255 Swiss francs.
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