News Column

Dollar stands firm at lower 102 yen on U.S. jobs surge

July 3, 2014

The U.S. dollar held firm in the lower 102 yen range Friday morning in Tokyo as much stronger than expected U.S. jobs data for June supported the view the world's largest economy has shaken off a first quarter slowdown.

At noon, the dollar fetched 102.13-15 yen compared with 102.14-24 yen in New York and 101.92-93 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.3609-3609 and 139.00-04 yen against $1.3605-3615 and 139.03-13 yen in New York and $1.3660-3662 and 139.23-27 yen in Tokyo late Thursday afternoon.

The U.S. Labor Department's latest nonfarm payrolls data showed 288,000 job additions compared with market forecasts between 210,000 and 220,000, while the unemployment rate declined to 6.1 percent from 6.3 percent in the previous two months.

U.S. Treasury yields rose on the upbeat figures, leading market players overnight in New York to buy the dollar for the yen and the euro on the appeal of widening interest rate gaps.

The data eased market worries about the U.S. economy after the country's gross domestic product last week showed an annualized 2.9 percent slowdown in the January to March quarter.

"It's being seen as evidence the economy rebounded in the April-June quarter," said Shinichiro Kadota, foreign exchange strategist at Barclays Bank.

The euro traded flat against the dollar and slightly lower against the yen on Friday morning after the European Central Bank held steady its monetary policy at its Governing Council meeting the day before.

Currency rates are likely to remain stable through the day as the week's major trading cues have been factored in and U.S. financial markets enter the Fourth of July holiday, Kadota said.

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Source: Japan Economic Newswire

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