The dollar reversed immediate gains against the yen, while the euro turned to an intraday low against the dollar, as traders took profits on knee-jerk gains following the March U.S. non-farm payrolls report. Non-farm payrolls plunged 663,000 in March, the U.S. Labor Department said Friday, largely matching Wall Street expectations and thereby allowing a brief rise in risk appetite trades. The dollar made its second pass through the Y100.0 mark to a five-month high of Y100.30, and the euro also immediately gained some against the dollar. Currencies, however, have since reversed those moves, with the euro declining to a session low of $1.3365, leaving them little changed from before the release. "To put today's overall report in context, total job losses in the current recessionary conditions have now totaled 5.1 million thus far, the largest slump in the post-war era, with the malaise affecting both the manufacturing and services sectors of the economy. The economy is by no means out of the woods yet," said Samarjit Shankar, director of global strategy at The Bank of New York Mellon in Boston. Daragh Maher, deputy head of global foreign exchange at Calyon in London, added that there is a bit of relief here, and, after a Thursday filled with surprises, exhaustion. A day earlier, the European Central Bank surprised markets with a smaller-than-expected rate cut and the Group of 20 summit surprised with a considerable stimulus package. Mostly, the market appears eager to start the weekend, say analysts, as currencies move inside narrow ranges. Later Friday, the ISM Non-Manufacturing index will be released at 10 a.m. EDT, and Federal Reserve Vice Chairman Donald Kohn is scheduled to speak at 11 a.m. EDT. Chairman Ben Bernanke is also scheduled to speak at a separate conference at noon. Friday morning in New York, the euro was at $1.3385 after spiking to $1.3495 and from $1.3455 late Thursday. The dollar was at Y99.82 from Y99.44 Thursday, according to EBS. The euro was at Y133.75 from Y133.80. The U.K. pound was at $1.4780 from $1.4706, while the dollar was at CHF1.1370 from CHF1.1349. Overnight, the dollar first broke through the Y100.0 mark, a technical and psychological barrier strategists have been eyeing since February. Meanwhile, the euro traded range-bound following Thursday's rally after the ECB decision to reduce its benchmark rate to 1.25% instead of 1%, as widely expected. It was unable to breach the $1.35 point again after that initial surge. The U.K. pound continues to strengthen against the dollar and euro. It rose to about a two-month high of $1.4845 and almost a one-month high against the euro, which fell to GBP0.9053. Data released overnight showed the U.K.'s dominant services sector continued to contract in March, but improved faster than economists expected. The Purchasing Managers Index for the sector rose to a six-month high of 45.5 in March from 43.2 in February, according to the research group Markit Economics. A housing report also indicated signs of stabilization in the U.K. economy. U.K. house prices fell again in March, but the year-on-year decline slowed for the first time since April last year when prices began falling in annual terms, lender Lloyds Banking Group PLC said Friday. Canada Morning The Canadian dollar is slightly lower after the U.S. dollar rebounded from its knee-jerk move lower following the release of the U.S. employment figures. Near-term direction for the Canadian unit along with other growth- and risk-sensitive currencies will be determined by how markets ultimately digest this latest piece of poor U.S. data, and whether the data manage to clip the recovery in risk attitudes that in the latter portion of this week has weakened the global safe-haven allure of the U.S. dollar. Near term, the Canadian dollar is seen trading in a C$1.2300 to C$1.2475 range, according to RBC Capital Markets. Friday morning, the dollar was at C$1.2440 from C$1.2420 late Thursday.

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