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Dollar moves narrowly in lower 91 yen ahead of U.S. employment data+(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Jan. 9_(Kyodo) _ The U.S. dollar moved narrowly in the lower 91 yen territory Friday in Tokyo as market players retreated to the sidelines ahead of closely-monitored U.S. employment data due out later in the day. At 5 p.m., the dollar fetched 91.15-17 yen against 91.13-23 yen in New York and 91.76-77 yen in Tokyo at 5 p.m. Thursday. It moved between 91.05 yen and 91.59 yen during the day, trading most frequently at 91.15 yen. The euro traded at $1.3671-3674 and 124.62-66 yen versus $1.3696-3706 and 124.93-125.03 yen in New York and $1.3580-3582 and 124.61-65 yen in Tokyo late Thursday. The dollar briefly rose to the mid-91 yen range in early Tokyo trading on buying by Japanese importers for settlement, dealers said. But the currency failed to maintain steam and hovered at the lower 91 yen level during most of Tokyo trading as currency traders were being cautious ahead of the release later in the day of key U.S. employment data. "Market players were reluctant to actively buy or sell the dollar because proof of further deterioration (in the U.S. labor market) is sure to come," said Akihiro Tanaka, senior currency trader at Resona Bank. The U.S. Labor Department is scheduled to release the December data for nonfarm payrolls and unemployment on Friday. Market players are expecting both nonfarm payrolls and the unemployment rate to rise, given the recent severity of the U.S. labor market. "If the (U.S.) unemployment rate reaches 7.0 percent or even higher, then it will certainly prompt dollar-selling," said Masafumi Yamamoto, head of foreign exchange strategy in Japan at the Royal Bank of Scotland. But the impact itself will likely be short-lived as currency dealers have already factored in grim employment data following the release earlier this week by a private company of a dismal nonfarm private employment estimate, he added. The ADP National Employment Report said Wednesday nonfarm private employment in the United States fell nearly 700,000 in December. The dollar's downside was limited due to expectations for U.S. President-elect Barack Obama's handling of the recession-hit economy. "Currency traders are waiting for more details of his (economy-boosting) measures to become clear, so when they do come out it will be positive for the dollar," said Masashi Hashimoto, manager of the global markets sales and trading division at the Bank of Tokyo-Mitsubishi UFJ. Obama stressed during his speech Thursday that dramatic action is necessary, and said failure to act could result in the current recession lingering for years and the unemployment rate reaching double digits. Copyright ? 2009 Kyodo News International, Inc. |