US jobs data takes toll on greenback in Asia
AFPTOKYO--The dollar dropped against the yen in Asia Wednesday after a weak U.S. jobs report fuelled expectations the Federal Reserve would keep its stimulus program in place until next year.
October 24, 2013, 12:07 am TWN
The greenback fetched 97.35 yen in Tokyo afternoon trade, down from 98.12 in New York Tuesday afternoon.
The euro slipped to US$1.3770 from US$1.3780 in New York, after it topped a two-year high of US$1.3790 earlier Wednesday. The single currency dipped to 134.11 yen against 135.23 yen.
On Tuesday the Labor Department released jobs data indicating the U.S. recovery is still tentative. Analysts said it suggests the Fed will hold off winding down its US$85 billion a month bond-buying scheme put in place last year to kick-start growth. The bank has said it will only cut down on its purchases once the world's largest economy is strong enough.
“The euro has been in demand against the dollar, mainly on the back of lower adjusting Fed monetary policy expectations,” Credit Agricole said.
“The data was perceived to provide more concrete evidence that the Fed will only begin to slow its asset purchases next year, with many now looking for tapering to only begin in March 2014.”
A draw down on the Fed stimulus is seen as positive for the dollar, so any delay in the central bank's timeline tends to weigh on the unit.
The dollar was mostly lower against other Asia-Pacific currencies.
It fell to 43.07 Philippine pesos from 43.21 pesos on Tuesday, to 61.53 Indian rupees from 61.78 rupees, and to 31.09 Thai baht from 31.14 baht.
The dollar was also down to 1,056.90 South Korean won from 1,060.95 won, to SG$1.2392, from SG$1.2415, while it gained to 10,818 Indonesian rupiah from 10,796 rupiah.
The Australian dollar edged up to 96.54 U.S. cents from 96.51 cents, while the Chinese yuan was at 16.00 yen against 16.11 yen.