Dollar firm in Asian trade ahead of US election

AFP FILE PHOTO

TOKYO – The dollar was firm in Asian trade Monday ahead of a nail-biter US presidential election and after an upbeat US jobs reports that offered some hope for the world’s biggest economy.

The greenback changed hands at 80.53 yen in Tokyo, from 80.47 yen late Friday in New York where the jobs data helped push the dollar to a six-month-high 80.68 yen at one stage.

The euro on Monday bought $1.2829 and 103.29 yen, from $1.2835 and 103.30 yen.

The United States added 171,000 jobs last month, well above the consensus estimate of 125,000, highlighting a growing gap between the US and debt-hit eurozone which is suffering from high unemployment.

While the dollar could slide against the yen as traders adjust their positions ahead of the US election, it would likely stay above the 80-yen level, said Masafumi Yamamoto, chief forex strategist at Barclays in Tokyo.

The dollar has “remained firm despite a fall in US long-term Treasury yields following the release of non-farm payrolls Friday, as well as a relative rise in support for President (Barack) Obama in the aftermath of hurricane Sandy,” he said.

An Obama win over Republican Mitt Romney in Tuesday’s US election is considered a dollar-selling factor.

Markets were also looking to a European Central Bank policy meeting later in the week.