US dollar holds strength after jobs report released


AFP

TOKYO–The American dollar held steady in Asia on Monday after soaring on a strong U.S. jobs report that sparked talk the Federal Reserve would move more quickly to raise interest rates. The greenback bought 125.47 yen in midday trading, down from 125.56 yen late Friday in New York where the U.S. unit climbed briefly to a 13-year high of 125.86 yen. But the greenback was slightly up from 124.45 yen in Tokyo on Friday before the U.S. employment data. Also, the Turkish lira dropped 6 percent to a record low of 2.80 to the U.S. dollar after the country’s Islamic-rooted ruling party lost its parliamentary majority in Sunday’s legislative elections. The strong figures �X a better-than-forecast 280,000 jobs created in May �X came after U.S. Federal Reserve Chair Janet Yellen said last month the plan to raise interest rates this year was on track. But the yen got a slight boost Monday morning as fresh data showed Japan’s economy grew 1.0 percent in January-March �X or 3.9 percent at an annualized rate �X sharply up from an initial estimate of 0.6 percent growth. That weakened the case for more Bank of Japan monetary easing, which would tend to push down the yen. The euro weakened to US$1.1097 and 139.28 yen from US$1.1115 and 139.56 yen in U.S. trade on Friday as investors watched for any sign of progress in Greece’s debt reform talks. ��The dollar’s strength inevitably weakens the euro,�� Daisuke Karakama, chief market economist at Mizuho Bank, told Bloomberg News. The American dollar strengthened against other Asia-Pacific currencies. It climbed to SG$1.3615 from SG$1.3481 on Friday, to 13,373.00 Indonesian rupiah from 13,290.00 rupiah, and to 45.15 Philippine pesos from 44.92 pesos. The greenback also rose to 64.07 Indian rupees from 63.94 rupees, to 1,122.58 South Korean won from 1,111.10 won, and to 33.91 Thai baht from 33.74 baht.

The Australian dollar weakened to 76.09 U.S. cents from 77.03 cents while the Chinese yuan bought 20.20 yen against 20.03 yen.