Dollar rises in Asia ahead of key jobs data
US Currency. AP FILE PHOTO
TOKYO – The dollar rose in Asia Monday as risk sentiment got a boost following last week’s US debt deal with investors now looking to the release of key jobs data later in the week.
In Tokyo morning trade, the greenback bought 97.96 yen, up from 97.72 yen in New York Friday afternoon.
The euro fetched $1.3673 and 133.96 yen, compared with $1.3682 and 133.75.
Markets remain buoyant after Washington’s pullback last week from the budget and debt crisis that threatened to send the country into a disastrous default.
The US will release existing home sales data later in the day while closely watched non-farm payrolls and unemployment figures are scheduled for Tuesday, after their publication was delayed due to the two-week government shutdown.
The political crisis in Washington and fears about its impact on the world’s biggest economy have stoked expectations that the US Federal Reserve will delay tapering its stimulus drive – a negative for the dollar.
“Markets appear to be pushing back expectations of Fed tapering especially as US politicians will likely gear up for another fight over coming months when the debt ceiling/budget will need renewed agreement,” Credit Agricole said.
“Fed tapering by December looks highly unlikely unless the US delivers a series of very positive data surprises.
“The net impact on the US dollar is clearly a negative one, with the currency continuing to languish at multi-month lows and showing little sign of turning around over the near term,” it added.
The euro and yen benefited from a weeks-long flight away from the dollar, with the European single currency touching an eight-and-a-half month high of $1.3703 on Friday.
Investors are also keeping an eye on a string of eurozone data this week and any further clues from the European Central Bank about its plans for further monetary easing.
