By Barbara Kollmeyer and Carla Mozee, MarketWatch
MADRID (MarketWatch) — The U.S. dollar rose against most key rivals Friday, ahead of monthly jobs figures that will factor into the U.S. Federal Reserve’s assessment of its monetary-stimulus efforts. The greenback lost its hold on 100 yen, though.
The ICE dollar index DXY +0.22% , which measures the U.S. unit against six other major currencies, jumped to 83.990 from 83.291 late Thursday in North America. The WSJ Dollar Index XX:BUXX +0.22% , a rival gauge with a slightly wider comparison basket, rose to 75.74 from 75.56.
The gains in the indexes reflected drops by the euro and the British pound Thursday after the European Central Bank and the Bank of England each indicated they had no plans to reduce stimulus.
ECB President Mario Draghi at a press conference Thursday said euro-zone interest rates will remain low or may even go lower.
The euro EURUSD -0.26% on Friday bought $1.2720, falling further from its $1.2914 level late Thursday. Sterling GBPUSD -0.67% dropped below the $1.50 level, buying $1.4967, compared with $1.0571 Thursday when it slid more than 1% against the greenback.
The U.S dollar USDJPY -0.04% failed to hang onto the 100-yen level, dipping to ¥99.96 compared with ¥99.80 seen late the prior day.
Word from the European Central Bank and the Bank of England that rate hikes aren’t on tap in the near future came ahead of the U.S. jobs data, due later Friday, which the Fed is monitoring as it decides when it will slow the pace of its bond purchases.
Fed Chairman Ben Bernanke said last month that bond purchases, currently at $85 billion a month, may be tapered down this year if the economy improves in line with the central bank’s projections. The Fed is looking for the unemployment rate to fall toward 6.5% by next year.
Analysts have said so-called quantitative easing pressures currency values.
The U.S. economy likely added 155,000 net jobs in June, less than the 175,000 gain in May, according to analysts polled by MarketWatch. But some expectations are calling for jobs gain of 170,000. The unemployment rate is expected to decline to 7.5% from 7.6%.
Meanwhile, the Australian dollar AUDUSD +0.19% saw a small recovery Friday, trading at 91.58 U.S. cents from 91.09 U.S. cents. The Aussie this week fell to its lowest level against the greenback since September 2010 on indication the Reserve Bank of Australia may resume interest-rate cuts.
“With [Australian] policy makers content to hover the axe over interest rates, and anxiety intensifying around Chinese growth prospects, short-term downward pressure on the Aussie looks set to continue should we receive a strong employment reading from the U.S.,” wrote CMC Markets analyst Niall King.
“A weaker payroll on the other hand could jolt the ‘oversold’ camp into action, and with it, a bounce in the Aussie,” King wrote to clients.
