Green­back re­gains lost value against the yen

The China Post - - BUSINESS INDEX & -

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.

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