TOKYO , Jan. 10 -- ( Kyodo ) _ The U.S. dollar moved in the upper 104 yen zone Friday in subdued trading ahead of key U.S. jobs data due out later in the day that may shape future U.S. Federal Reserve policy. At 5 p.m. , the dollar fetched 104.96-97 yen compared with 104.78-88 yen in New York and 104.88-89 yen in Tokyo at 5 p.m. Thursday . It moved between 104.77 yen and 105.00 yen during the day, changing hands most frequently at 104.93 yen . The euro was quoted at $1.3613-3614 and 142.89-93 yen against $1.3602-3612 and 142.60-70 yen in New York and $1.3601-3602 and 142.65-69 yen in Tokyo late Thursday afternoon. The dollar recouped slight overnight losses in the morning on a day seeing concentrated yen selling for foreign currencies by importers, dealers said. But trading in Tokyo was limited as market players were waiting for the release of data on U.S. nonfarm payrolls for December, they said. The data are seen as a key indicator of the strength of the U.S. economic recovery and may influence the pace at which the U.S. Federal Reserve will trim its asset-buying program. The Fed decided last month to reduce its monthly bond purchases to $75 billion from $85 billion this month, but said further reductions depend on improvements in the labor market and inflation rates. Unexpectedly strong numbers may boost the dollar to the upper 105 zone, said Daisuke Karakama, a market economist at Mizuho Bank . "I don't think (the market) is seeing strong numbers as a given. If the numbers are positive, the dollar will go up accordingly." Economists speculate the U.S. unemployment rate may fall below 7 percent in December in line with the economic recovery. Dollar selling will be limited even if the jobless rate is shown to have increased slightly as more people began looking for jobs, Karakama said. The euro was mostly unchanged against the dollar and gained slightly against the yen after bouncing back overnight from a drop following a policy meeting of the European Central Bank on Thursday. The ECB left its key interest rate unchanged and "will maintain an accommodative stance of monetary policy for as long as necessary," ECB President Mario Draghi said after the meeting. The ECB cut its refinancing rate to a record-low 0.25 percent in November in an implicit effort to bring down euro rates. "If the U.S. jobs data are strong, U.S. interest rates will go up and the euro will be driven down," said Yuji Saito , director of foreign exchange at Credit Agricole Corporate & Investment Bank in Tokyo .
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