Dollar gains in Asia on upbeat US data

Published: 11 June 2013
Tokyo - The dollar strengthened in Asian trade Monday thanks to a better-than-expected US jobs report, as traders turn their focus to an upcoming policy meeting at the Bank of Japan.

In Tokyo afternoon trade, the dollar was quoted at 98.25 yen, up from 97.56 yen in New York late Friday.

The euro fetched $1.3197 and 129.68 yen, against $1.3218 and 128.95 yen.

A rally in the greenback, which at one point sunk below 96 yen last week, comes after the Labor Department said Friday that 175 000 jobs were generated in May.

While the figures were better than forecasts they were still low enough to prevent the Federal Reserve from reeling back its huge monetary easing programme.

The next indicators out of the United States are retail sales and factory output, which will provide fresh signs about the state of the world's largest economy.

The BoJ's two-day meeting, which wraps up Tuesday, will be scoured for signs of fresh measures to stoke the world's third-largest economy, on top of its own huge stimulus programme.

Further easing could weigh on the yen, which has declined sharply since late last year.

Revised data on Monday showed Japan's economy picked up pace in the first quarter, but uncertainty remains over Tokyo's ambitious bid to lift the economy out of years of deflation.

"Some investors may hope for additional measures in order to ease market conditions," Credit Agricole said.

The dollar advanced against other Asia-Pacific currencies Monday.

It rose to Sg$1.2546 from Sg$1.2434 Friday, to 1,125.85 South Korean won from 1,112.88 won and to 57.54 Indian rupees, a record high, from 56.76 rupees, partly due to growing demand for dollars among oil importers.

The greenback also firmed to Tw$29.79 from Tw$29.66, to 9,813 Indonesian rupiah from 9,793 rupiah and to 42.61 Philippine pesos from 42.08 pesos.

It strengthened to 30.73 Thai baht from 30.66 baht.

The Australian dollar fell to 94.17 US cents from 95.04 cents while the Chinese yuan firmed to 16.02 yen from 15.68 yen.
Tags: Dollar, Asia, USData,


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