Greenback ticks up against euro

File photo: Siphiwe Sibeko.

File photo: Siphiwe Sibeko.

Published Aug 7, 2015

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Tokyo - The dollar rose against the euro and yen on Friday as traders focus on key US jobs data later in the day, with an upbeat report likely to boost hopes for a September interest rate hike.

In Tokyo, the greenback ticked up to 124.80 yen from 124.73 yen in New York.

The euro edged down to $1.0915 and 136.20 yen from $1.0923 and 136.25 yen.

Investors are eyeing official US jobs data later on Friday for the latest clues about the timing of an interest rate hike, widely expected by September or December.

“The dollar is set to test the year high against the yen if payrolls are as expected or exceed forecasts, with markets taking it as a green light for a September rate hike,” Mitsuhiro Yoshida, an officer for global markets at Sumitomo Mitsui Trust Bank, told Bloomberg News.

Analysts expect the US economy added 229 000 jobs in July.

After a two-day meeting, the Bank of Japan on Friday held off fresh easing measures, saying the world's number three economy was steadily recovering, but analysts widely expect policymakers to act later in the year.

The British pound, which fell in New York on the Bank of England's monetary policy decision to keep interest rates low, was steady in Asian trading.

It fetched $1.5515 in Tokyo against $1.5513 in US trade.

The BoE, as expected, kept its main interest rate at a record-low 0.50 percent. The central bank raised its forecast for British economic growth this year to 2.8 percent from a previous estimate of 2.5 percent.

However, it also said the near-term outlook for inflation is “muted”, according to BoE minutes.

AFP

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