Dollar un­der pres­sure ahead of US jobs data

The China Post - - WORLD BUSINESS -

The dollar eased against the yen in Asia on Fri­day as in­vestors turn their at­ten­tion to the re­lease later in the day of a key U.S. jobs re­port that could give an idea of the Fed­eral Re­serve's plans for rais­ing in­ter­est rates.

The green­back edged down to 119.62 yen in Tokyo from 119.77 yen in New York late Thurs­day.

The euro was quoted at US$1.0879, un­changed from U.S. trade, while fall­ing to 130.16 yen from 130.30 yen.

Traders were sit­ting tight be­fore the La­bor Depart­ment's non­farm pay­rolls data, af­ter fig­ures this week showed dis­ap­point­ing pri­vate-sec­tor jobs cre­ation in March and eas­ing man­u­fac­tur­ing ac­tiv­ity.

The dollar, which has been ral­ly­ing this year on spec­u­la­tion about the first rate hike since 2006, has lost some steam over the past few weeks as talk of an early sum­mer move re­treated.

Fri­day's re­port is ex­pected to say the U.S. econ­omy added 245,000 non- farm jobs last month, down from Fe­bru­ary's ex­tra 295,000, ac­cord­ing to a Bloomberg sur­vey.

"In­vestors are all the more cau­tious be­cause up to now the re­cov­ery in the la­bor mar­ket has been go­ing in a straight line," said Kazuo Shi­rai, a Los An­ge­les­based trader at MUFG Union Bank NA.

"If pay­rolls come out be­low 200,000, a June move by the Fed­eral Re­serve will be­come un­likely and a shift back to ex­pec­ta­tions for a Septem­ber hike will push down the dollar," he told Bloomberg News.

The dollar was mixed against other Asia-Pa­cific cur­ren­cies.

It sank to SG$ 1.3577 from SG$ 1.3623 on Thurs­day, to 1,093.88 South Korean won from 1,096.88 won, to NT$31.06 from NT$31.20, and to 44.45 Philip­pine pe­sos from 44.63 pe­sos.

The dollar rose to 13,024 In­done­sian ru­piah from 12,990 ru­piah, and to 32.47 Thai baht from 32.45 baht, while stay­ing un­changed at 62.50 In­dian ru­pees.

The Aus­tralian dollar fetched 75.96 U.S. cents against 75.95 cents, while the Chi­nese yuan bought 19.31 yen com­pared with 19.30 yen.

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