Dollar rises amid signs US labour market is improving
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