Greenback regains lost value against the yen
The U.S. dollar held up against the yen in Asia on Tuesday after selling on last week’s weak U.S. jobs report ran its course.
The greenback was at 119.56 yen in Tokyo trade, up from 119.52 yen in New York and 119.05 yen in Tokyo earlier Monday.
Buying by Japanese importers helped prop up the U.S. unit, but it lacked the power to give a significant boost to the currency.
“There is no buying incentive to push for rises past 120 yen,” a dealer at a major Japanese bank told Jiji Press.
Expectations for a U.S. rate hike any time soon took a blow after the Labor Department said the economy added just 126,000 jobs in March, half of what was expected and the weakest growth since December 2013.
Investors were also staying away from aggressive positions with the Bank of Japan set to hold a twoday policy meeting this week after figures showed inflation was flat, sparking speculation of further monetary easing measures.
The euro firmed to US$1.0924 and 130.61 yen on Tuesday compared with US$1.0928 and 130.60 yen in U.S. trade.
Despite the pick-up Tuesday, dollar-buying was also tempered by a fall in a measure of U.S. service sector activity as well as dovish comments from New York Federal Reserve President William Dudley, who called U.S. economic growth “quite weak.”
Dudley stressed in a speech in New Jersey that given the slowdown, the timing of any move to increase interest rates “remains uncertain because the future evolution of the economy cannot be fully anticipated.”
He added it “will be important to monitor developments to determine whether the softness in the March labor market report evident on Friday foreshadows a more substantial slowing in the labor market than I currently anticipate.”
Australia’s dollar rose against the dollar after its central bank held interest rates unchanged at a record low on Tuesday.
The Aussie was quoted at 76.90 cents, up from 76.24 cents on Monday afternoon.
The dollar was higher against other Asia-Pacific currencies.
It gained to SG$1.3559 from SG$1.3527 on Monday, to 1,088.89 South Korean won from 1,083.91 won, to NT$30.97 from NT$30.93 and to 44.52 Philippine pesos from 44.37 pesos.