US dollar holds strength af­ter jobs re­port re­leased

The China Post - - BUSINESS INDEX & -

The Amer­i­can dollar held steady in Asia on Mon­day af­ter soar­ing on a strong U.S. jobs re­port that sparked talk the Fed­eral Re­serve would move more quickly to raise in­ter­est rates.

The green­back bought 125.47 yen in mid­day trad­ing, down from 125.56 yen late Fri­day in New York where the U.S. unit climbed briefly to a 13-year high of 125.86 yen.

But the green­back was slightly up from 124.45 yen in Tokyo on Fri­day be­fore the U.S. em­ploy­ment data.

Also, the Turk­ish lira dropped 6 per­cent to a record low of 2.80 to the U.S. dollar af­ter the coun­try’s Is­lamic-rooted rul­ing party lost its par­lia­men­tary ma­jor­ity in Sun­day’s leg­isla­tive elec­tions.

The strong fig­ures — a bet­terthan-fore­cast 280,000 jobs cre­ated in May — came af­ter U.S. Fed­eral Re­serve Chair Janet Yellen said last month the plan to raise in­ter­est rates this year was on track.

But the yen got a slight boost Mon­day morn­ing as fresh data showed Ja­pan’s econ­omy grew 1.0 per­cent in Jan­uary-March — or 3.9 per­cent at an an­nu­al­ized rate — sharply up from an ini­tial es­ti­mate of 0.6 per­cent growth.

That weak­ened the case for more Bank of Ja­pan mon­e­tary eas­ing, which would tend to push down the yen.

The euro weak­ened to US$1.1097 and 139.28 yen from US$1.1115 and 139.56 yen in U.S. trade on Fri­day as in­vestors watched for any sign of progress in Greece’s debt re­form talks.

“The dollar’s strength in­evitably weak­ens the euro,” Daisuke Karakama, chief mar­ket econ­o­mist at Mizuho Bank, told Bloomberg News.

The Amer­i­can dollar strength­ened against other Asia-Pa­cific cur­ren­cies.

It climbed to SG$1.3615 from SG$1.3481 on Fri­day, to 13,373.00 In­done­sian ru­piah from 13,290.00 ru­piah, and to 45.15 Philip­pine pe­sos from 44.92 pe­sos.

The green­back also rose to 64.07 In­dian ru­pees from 63.94 ru­pees, to 1,122.58 South Korean won from 1,111.10 won, and to 33.91 Thai baht from 33.74 baht.

The Aus­tralian dollar weak­ened to 76.09 U.S. cents from 77.03 cents while the Chi­nese yuan bought 20.20 yen against 20.03 yen.

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