Euro at three-week high versus the US dollar

A better-than-expected U.S. jobs report Friday helped spur sentiment across the region, analysts said.

The euro was changing hands at its highest level against the dollar since Aug. 18, at US$1.2905 from US$1.2895 in New York Friday.

The single currency fetched 108.75 yen, slightly down from 108.81.

The dollar was flat at 84.34 yen in Tokyo afternoon trade.

In a closely watched report, the Labor Department said Friday that the economy lost 54,000 jobs last month, a better figure than the 120,000 loss expected by economists, as unemployment climbed to 9.6 percent, its highest since May.

The dollar fell to 6.7868 Chinese yuan after the central parity rate — the centre point of the currency's allowed trading band — was set at 6.7838, its lowest level since Aug. 11 and down from 6.7973 on Friday.

“I was very surprised by the low central parity fixing today, but it is in line with the central bank's goal after the June policy change of having a more flexible yuan,” a Shanghai-based trader told Dow Jones Newswires.

U.S. National Economic Council chairman Larry Summers and Deputy National Security Adviser Thomas Donilon are visiting China from Monday.

They are expected to discuss the yuan valuation among other topics but their visit has so far had little impact on the currency market.

China announced in June that it would make its currency more flexible. It had been effectively pegged at about 6.8 to the dollar since 2008.

The dollar was also lower against other Asian currencies.

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