The
dollar fell past 93 yen for the first time in a month before data this week
forecast to show the recovery in the U.S. job market isn’t fast enough to
prompt the Federal Reserve to reduce monetary stimulus.
The
yield premium on 10-year Treasuries over similar- maturity Japanese government
bonds slid to the least in a month, sapping the allure of the greenback. The
yen rose against its major peers as investors weighed what the Bank of Japan
(8301) will decide to do during a two-day meeting starting tomorrow. Demand for
the euro was limited before Italian President Giorgio Napolitano meets advisers
today for talks on forming a new government.
“The
U.S. economy isn’t strong enough to make a significant dent in the unemployment
rate,” said Peter Dragicevich, a Sydney-based currency economist at
Commonwealth Bank of Australia (CBA), the nation’s largest lender. “Given
that’s one of the key thresholds the Fed is looking for, we can’t see it
pulling back from its stimulus.”
The
dollar fell 0.2 percent to 93.09 yen as of 9:57 a.m. in Tokyo after touching
92.96, the weakest since March 5. It lost 0.1 percent to $1.2867 per euro.
Europe’s 17-nation currency touched 119.49 yen, the lowest since Feb. 27,
before trading little changed at 119.77.
Companies
in the U.S. probably added 200,000 jobs last month after an increase of 198,000
in February, economists forecast in a Bloomberg News survey before ADP Research
Institute releases the data tomorrow. Government figures on April 5 are likely
to show that the jobless rate was 7.7 percent in March, unchanged from the
prior month, according to another poll.
(Source: Bloomberg)
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