US dollar rises before jobs data; hopes of interest rate hikes
The U.S. dollar rose Friday as traders focused on key U.S. jobs data later in the day, with an upbeat report likely to boost hopes for a September interest rate hike.
In Tokyo, the greenback ticked up to 124.79 yen from 124.73 yen in New York.
The euro edged down to US$1.0917 and 136.22 yen from US$1.0923 and 136.25 yen.
Investors are eyeing official U.S. payroll figures later Friday for the latest clues about the timing of an interest rate hike, widely expected by September or December.
After a two-day meeting, the Bank of Japan Friday held off fresh easing measures, saying the world’s number three economy was steadily recovering, but analysts widely expect policymakers to act later in the year.
The British pound, which fell in New York on the Bank of England’s (BOE) monetary policy decision to keep interest rates low, was steady in Asian trading. It fetched US$1.5516 in Tokyo against US$1.5513 in U.S. trade.
The BOE, as expected, kept its main interest rate at a record-low 0.50 percent. The central bank raised its forecast for UK economic growth this year to 2.8 percent from a previous estimate of 2.5 percent.
However, it also said the nearterm outlook for inflation is “muted,” according to BOE minutes.
The American dollar mostly strengthened against other AsiaPacific currencies.
It rose to SG$ 1.3863 from SG$1.3843 on Thursday, to 63.83 Indian rupees from 63.77 rupees.
The greenback also inched up to 13,548.00 Indonesian rupiah from 13,524.50 rupiah, and to 45.80 Philippine pesos from 45.78 pesos.
It edged down to 1,167.83 South Korean won from 1,169.30 won and to 35.17 Thai baht from 35.18 baht.
The Australian dollar firmed to 73.65 U.S. cents from 73.32 U.S. cents, while the Chinese yuan fetched 20.10 yen against 20.09 yen.