Dollar edges down against yen ahead of US jobs report



The dollar edged down against the yen Thursday, snapping a week-long winning streak as traders await jobs data that could seal the case for a September US interest rate hike.

Friday’s non-farm payrolls report will offer the latest clues about the state of the world’s top economy and whether it is strong enough to withstand higher borrowing costs.

The US Federal Reserve has signalled it is likely to raise US interest rates this year, citing steady job creation as a sign of a healthier domestic economy, but the timeline for a move remains hazy.

“FX markets are waiting for Friday’s US August employment report for dollar direction,” Elias Haddad, a senior foreign-exchange strategist at Commonwealth Bank of Australia in Sydney, told Bloomberg News.

Some analysts are doubtful about a rate hike as early as this month, despite hawkish remarks last week from Fed boss Janet Yellen and her vice chair Stanley Fischer.

“While a September hike is not impossible, forward guidance will remain cautious and a range break for the dollar is highly unlikely,” Australia and New Zealand Banking Group wrote in a commentary.

On Thursday in Tokyo, the dollar weakened to 103.29 yen from 103.43 yen in New York, although it was still around its highest level in a month against the yen.

The euro was slightly weaker at $1.1152 and 115.19 yen against $1.1156 and 115.38 yen in US trade.

The greenback booked gains against most Asian emerging currencies, edging up against the Singapore dollar, the South Korean won, Philippine peso, and Malaysian ringgit.

In this article:
Receive News Alerts on Whatsapp: +2348136370421

No Comments yet