TOKYO: The dollar slid in Asia on Friday as investors flocked to the safe-haven yen as traders grow nervous ahead of a crucial US payrolls report that will provide fresh clues about the state of the world's biggest economy.
In Tokyo trade, the dollar fetched 96.53 yen, from 97.07 yen late Thursday in New York, where it sank at one point to as low as 95.88 yen. The greenback has lost around four percent since the start of the week.
The euro also slid against the Japanese currency to 127.76 yen from 128.55 in New York while it sat at $1.3252 from $1.3243, after the ECB held off fresh stimulus following an interest-rate cut last month.
Friday's non-farm payrolls will be used as an indicator for the Federal Reserve's next policy move, with expectations growing that it will soon begin to row back on its monetary easing programme.
"All eyes will be on the US jobs report today...as the market adjusts their expectations of the US Fed's tapering timing," Credit Agricole said in a note.
Central bank stimulus have helped support stock market rallies but renewed concern about the state of the US economy has stoked risk aversion, which tends to usher in yen buying, dealers said.
The euro was given strong support by the European Central Bank's decision to hold off fresh stimulus measures following its interest rate cut last month.
"While this was expected, (ECB) President Mario Draghi was not as dovish as the market had hoped in his press conference, pointing to some indications of improved sentiment in Europe," National Australia Bank said in a note.
The euro "has been in demand against the dollar, mainly on the back of a pretty uneventful ECB press conference and due to rising expectations for a weak US payrolls report", Credit Agricole said.
Markets will also be eyeing a two-day Bank of Japan policy meeting next week for signs of any change to its massive monetary easing programme which has been credited for helping drive down the yen in recent months.
Comments
Comments are closed for this article.