IN BRIEF : Dollar Rises Sharply in Europe

The U.S. dollar rose sharply against major currencies in busy European trading today after the release of U.S. employment figures for December. Gold prices were lower.

Foreign exchange dealers said the dollar rose early in the day on firming U.S. interest rates and continuing tension in the Mediterranean after U.S. Navy fighters shot down two Libyan fighters on Wednesday. The dollar also was boosted by the U.S. Labor Department announcement that civilian unemployment in December dropped from 5.4% to 5.3%. In London, one British pound cost $1.7797 late today, cheaper for buyers than Thursday’s late $1.7970.

The dollar closed earlier in Tokyo at 125.97 yen, up from Thursday’s late 124.50. In London late today, the dollar traded higher at 126.40 yen.

Gold closed in London, the major market, at a bid $405.75 a troy ounce, down from $407.75 on Thursday.