The dollar’s rising momentum against the yen weakened on Monday in Asia as Japanese exporters jumped into the market to sell after the greenback was pushed over the Y99 mark following stronger-than-expected U.S. jobs data Friday.
The jobs figures offered a brighter picture of the U.S. economy, bolstering the view that the Federal Reserve will soon start winding down its asset-purchase program.
The data came after a U.S. government shutdown and fiscal stalemate in early October clouded the economic outlook for the world’s biggest economy, leading market participants to believe the U.S. central bank wouldn’t be prepared to end the crisis-response measure anytime soon.
“We had pushed back the potential start of tapering, but that view is now being adjusted,” said Akira Moroga, manager at forex products group at Aozora Bank. “People in the market are now seeing a 50% chance that the Fed will begin tapering in December.”
The dollar was at Y98.99 as of 0450 GMT from Y99.08 late Friday in New York.
“Japanese exporters are selling dollars after the greenback rose above Y99, but at the same time buying is strong following the jobs data,” said Michiyoshi Kato, senior vice president of forex sales at Mizuho Bank.
The euro was at $1.3363 from $1.3370. The Wall Street Journal Dollar Index, a measure of the dollar against a basket of major currencies, was at 73.420 from 73.411.
Many Asian currencies such as the Korean won and new Taiwan dollar were lower following the solid U.S. employment figures. The dollar was at KRW1,066.6 from its Friday close of KRW1,064.9. The greenback was at NT29.455 from NT29.420.
Looking ahead, investors are focusing on U.S. economic indicators later this week and a confirmation hearing at the U.S. Senate’s banking committee on Thursday for Federal Reserve chair nominee Janet Yellen.
The U.S. market is closed Monday for Veterans Day.
Interbank Foreign Exchange Rates At 00:50 ET / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 98.97-99.00 99.20-22 -0.23 99.23 98.96 +14.11
EUR/USD Euro 1.3362-64 1.3357-59 +0.04 1.3366 1.3346 +1.27
GBP/USD U.K. 1.6012-16 1.6000-07 +0.07 1.6021 1.6002 -1.43
USD/CHF Switzerland 0.9220-26 0.9225-30 -0.05 0.9232 0.9216 +0.77
USD/CAD Canada 1.0475-78 1.0479-86 -0.06 1.0486 1.0472 +5.53
AUD/USD Australia 0.9381-84 0.9384-89 -0.04 0.9390 0.9368 -9.72
NZD/USD New Zealand 0.8278-82 0.8258-68 +0.20 0.8287 0.8244 +0.02
Euro Rate
EUR/JPY Japan 132.27-30 132.52-58 -0.20 132.52 132.22 +15.58
Source: ICAP PLC
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires 11-11-130114ET Copyright (c) 2013 Dow Jones & Company, Inc.
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