Dollar gains in Asia after upbeat US jobs data

AFP FILE PHOTO

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 morning trade, the dollar was quoted at 98.05 yen, up from 97.56 yen in New York late Friday.

The euro fetched $1.3215 and 129.44 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, which in turn boosted buying sentiment.

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 program.

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 limp economy out of years of deflation.

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