WSJ:Dollar Stays Largely Unchanged Ahead of US Jobs Data
By Kosaku Narioka
The dollar stayed largely unchanged against other major currencies Friday in Asia as investors largely refrained from trading ahead of key U.S. monthly jobs data to be released later in the day.
The non-farm payrolls data could have far-reaching implications for markets globally. While good data will help reaffirm the recovering trend of the U.S. economy, weak data will generate further doubts over the strength of the recovery following dismal jobs data last month.
Solid U.S. readings will likely prompt "active dollar buying" against the yen, said Masaru Ishibashi, head of the FX trading group at Sumitomo Mitsui Banking Corp. But bad data will keep risk-taking sentiment subdued for another month or so, he said.
The dollar was at Y101.97 as of 0430 GMT, from Y102.12 late Thursday in New York. The euro was at $1.3592 from $1.3590. The U.K. pound was at $1.6326 from $1.6321.
Mr. Ishibashi said that even if the latest figures help confirm a recovery trend, investors who got burned earlier this year following January's weak data might not be as willing to bet on the dollar as they were.
On the other hand, a strong U.S. economic recovery may not be great for emerging markets, said Michiyoshi Kato, senior vice president at forex sales at Mizuho Bank.
"If the U.S. turns back into the engine of the global economy, there is no need to take risks in emerging markets," he said.
But Mr. Kato also noted that as many emerging economies have adopted floating exchange rates and have accumulated foreign reserves, it's unlikely any emerging market selloffs would lead to a global crisis.
The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was at 74.031 from 74.029.
Interbank Foreign Exchange Rates At 23:50 EST / 0450 GMT
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