News Column

Dollar rises to mid-102 yen zone on hopes for strong U.S. jobs data

May 2, 2014

Satoshi Iizuka

The U.S. dollar rose to the mid-102 yen zone Friday in Tokyo on expectations for a strong U.S. jobs report result for April due out later in the day.

At 5 p.m., the dollar fetched 102.48-49 yen compared with 102.28-38 yen in New York and 102.19-21 yen in Tokyo at 5 p.m. Thursday. It moved between 102.26 yen and 102.50 yen during the day, changing hands most frequently at 102.34 yen.

The euro was quoted at $1.3853-3855 and 141.97-142.01 yen against $1.3866-3876 and 141.86-96 yen in New York and $1.3885-3886 and 141.89-93 yen in Tokyo late Thursday afternoon.

The dollar strengthened to the 102.50 yen line in the afternoon session, supported by expectations that the U.S. employment data will be bullish, said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow.

"Thanks to broadly favorable recent U.S. economic data except for gross domestic product in the first quarter, hopes for a good outcome (of the jobs report) have gradually spread among market participants," Sakai said.

In morning trading, the U.S. currency remained directionless in the lower 102 yen range amid a lack of fresh incentives, dealers said.

"A somewhat strong outcome will not be enough to send the dollar rallying, given the already heightened projections," said Minori Uchida, head of Tokyo global market research at the Bank of Tokyo-Mitsubishi UFJ.

While market consensus on the increase in nonfarm payrolls is between 215,000 and 220,000, Uchida said participants need to see gains of over 230,000 to lead the dollar to the 103 yen range.

He also said the U.S. currency will be supported in the lower 101 yen zone even if the figure comes out weaker than expected, judging from its recent trend.

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Source: Japan Economic Newswire

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