By Myra P. Saefong, MarketWatch
TOKYO (MarketWatch) -- The U.S. dollar moved lower in Asian trading Friday afternoon, losing ground against the yen and euro with traders wary ahead of the release of U.S. nonfarm payrolls later in the global day.
The dollar index (DXY 82.38, -0.08, -0.10%) , a measure of the U.S. unit against a basket of currencies, fell to 82.384 from 82.401 late Thursday.
Against the Japanese yen (USDYEN 84.2900, +0.0100, +0.0119%) , the dollar slipped to ¥84.21, down from ¥84.29 late Thursday.
The euro (EURUSD 1.2826, -0.0002, -0.0156%) stood at $1.2824, up from $1.2820 in late North American trading on Thursday. See Thursday's currencies story.
The U.S. government will report August employment data Friday morning in Washington.
Economists surveyed by MarketWatch forecast a net gain of 30,000 private-sector jobs, but an overall decline of 105,000 as the census winds down, resulting in layoffs for temporary census workers. See the economic preview story.
"Whether or not payrolls surprise to the downside remains to be seen, but the squaring of long dollar positions ahead of this release is smart, considering the volatility that is expected to be triggered by the report," Kathy Lien, director of currency research at GFT, wrote in a note to clients released late Thursday in New York.
"Of all the economic indicators that investors follow, [nonfarm payrolls] is one, if not the most market-moving release," she said.
"Non-farm payrolls measure the changes in the American workforce, which has significant implications for the U.S. economy because it directly impacts consumer spending, the profitability of U.S. corporations and in turn, overall growth for the nation," said Lien. "This is why the Federal Reserve will be watching the report closely to see if more quantitative easing is needed to stimulate the economy."
