Dol­lar rises amid signs US labour mar­ket is im­prov­ing

The Pak Banker - - International3 -

BRUS­SELS: The dol­lar traded near a nine-week high against the yen be­fore a U.S. re­port that may show pay­rolls ex­panded for a sec­ond month, adding to signs the re­cov­ery of the world's largest econ­omy is gath­er­ing mo­men­tum.

The green­back gained against 11 of its 16 ma­jor peers as mil­i­tary ten­sions on the Korean penin­sula sup­ported de­mand for safe-haven as­sets. Aus­tralia's dol­lar dropped af­ter data showed re­tail sales un­ex­pect­edly fell. Tai­wan's dol­lar surged on prospects global funds will buy more of the is­land's as­sets.

"Re­cent good eco­nomic data are sup­port­ive of the dol­lar," said Takayuki Asa­hara, a dealer in Tokyo at Shinkin Cen­tral Bank, the cen­tral in­sti­tu­tion for Ja­pan's fi­nan­cial co­op­er­a­tives. "Fur­ther gains can be ex­pected should the job data to­mor­row be pos­i­tive."

The dol­lar traded at 84.09 yen as of 6:47 a.m. in London from 84.19 in New York yes­ter­day. It reached 84.41 yen on Nov. 29, the high­est level since Sept. 27. The green­back was lit­tle changed at $1.3139 per euro, af­ter climb­ing as high as $1.3088. The euro was at 110.49 yen from 110.58 yen.

U.S. em­ploy­ers added 145,000 work­ers last month af­ter a 151,000 gain in Oc­to­ber, ac­cord­ing to a Bloomberg News sur­vey of econ­o­mists be­fore the La­bor Depart­ment re­port to­mor­row.

The Fed­eral Re­serve's Beige Book showed yes­ter­day hir­ing im­proved, man­u­fac­tur­ing ex­panded and re­tail­ers an­tic­i­pated a stronger hol­i­day shop­ping sea­son. ADP Em­ployer Ser­vices re­ported yes­ter­day em­ploy­ment in­creased 93,000 last

by month, the most since Novem­ber 2007. The me­dian pro­jec­tion of econ­o­mists in an­other Bloomberg sur­vey was for a 70,000 gain.

The dol­lar has risen 4 per­cent over the past month, ac­cord­ing to Bloomberg Cor­re­la­tion-Weighted In­dexes. The yen has fallen 0.8 per­cent and the euro de­clined 3.6 per­cent. Korean Ten­sions North Korea may at­tack the prov­ince that sur­rounds Seoul, the Tokyo Shim­bun news­pa­per said, cit­ing an uniden­ti­fied per­son who quoted an of­fi­cial in the com­mu­nist nation. South Korea will hold ar­tillery drills on Yeon­pyeong, the is­land shelled by the North last week, on Dec. 6, tele­vi­sion broad­caster MBN re­ported to­day, cit­ing govern­ment of­fi­cials it didn't iden­tify.

Ja­pan and the U.S. will con­duct a joint mil­i­tary ex­er­cise from to­mor­row un­til Dec. 10, the Joint Staff of the Ja­pan Self-De­fense Forces said in a state­ment.

"Geopo­lit­i­cal risk ap­pears to be re­turn­ing a bit on wor­ries that North Korea may at­tack the South," said Satoshi Ok­a­gawa, head of the for­eignex­change and money trad­ing group in Singapore at Su­mit­omo Mit­sui Bank­ing Corp., a unit of Ja­pan's third­largest bank­ing group. "There's some safe-haven buy­ing of the yen and the dol­lar." Aus­tralia Sales The Aus­tralian dol­lar fell against 13 of its 16 most-traded peers af­ter the Bureau of Statis­tics said re­tail sales de­clined 1.1 per­cent in Oc­to­ber. That com­pared with the 0.4 per­cent gain es­ti­mated by econ­o­mists in a Bloomberg sur­vey. -Reuters

AHMED­ABAD: A worker car­ries a tray of food in­side a road­side eatery in the western In­dian city of Ahmed­abad Thurs­day. An­nual food in­fla­tion eased to its low­est level in 18 months in the year to Nov. 20, pressed down by lower prices of pota­toes, pulses and veg­eta­bles, in line with pol­i­cy­maker fore­casts. -Reuters

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