Greenback holds firm ahead of US jobs data
AFP August 2, 2014, 12:04 am TWN
TOKYO -- The dollar inched up against other major currencies in Asia on Friday as market players expected upcoming U.S. jobs data would be solid.
The dollar was at 102.93 yen in Tokyo afternoon trade, compared with 102.80 yen in New York Thursday afternoon.
The euro stayed weak after data showed eurozone inflation slowed to 0.4 percent in July, its lowest level since late 2009 in the aftermath of the global financial crisis.
The common currency bought US$1.3384 against US$1.3390 in US trade while firming to 137.79 yen from 137.65 yen.
Investors were waiting for U.S. payrolls data to be released later Friday.
Attention was especially high after the Federal Reserve's policy-setting board was quite dovish on the labour market after a meeting this week, National Australia Bank (NAB) said.
Jobs creation will have stayed solid in July even if some easing, NAB said, forecasting an increase of 230,000 in nonfarm payrolls after the 288,000 gain in June.
Strong jobs data could fuel speculation that Federal Reserve would raise its benchmark rate sooner than the earlier expected second half of 2015.
Capital Economics said Argentina's default was likely to have limited impact on other emerging markets and U.S. nonfarm payrolls were set to rise.
"Most of the evidence suggests that labour market conditions remained strong in July," it said in a note, projecting non-farm payroll employment had increased by around 225,000 in July.
The dollar also went up against other Asia-Pacific currencies.
It rose to 32.28 Thai baht from 31.98 baht on Thursday, to 60.82 Indian rupees from 60.21 rupees, to 43.68 Philippine pesos from 43.42 pesos and to SG$1.2489 from SG$1.2456.
The dollar climbed to 1,035.23 South Korean won from 1,026.10 won, and to 11,791.30 Indonesian rupiah from 11,575.00 rupiah.
The Australian dollar fell to 92.90 U.S. cents from 93.24 cents, while the Chinese yuan bought 16.64 against 16.65 yen.
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