Dollar firms against the yen ahead of jobs data

Published: 3 Oct at 7 AM Tags: Euro, Dollar,

The dollar has managed to gain some ground against the yen after steep overnight losses. The greenback is up 0.4 per cent to 108.83 yen after an increase in Tokyo stocks which softened the demand for the safe haven Japanese currency. It is unclear whether the dollar will continue to regain strength and analysts are now concentrating on US non-farm payroll data due out later.

The euro appears to be remaining steady at $1.2658. The single currency has strengthened after president of the European Central Bank Mario Draghi suggested that the central bank was not about to introduce stimulus measures.

However, many analysts feel that some sort of quantitative easing from the ECB is inevitable. This is in stark contrast to US policy which is likely to involve a hike in interest rates.

The New Zealand and Australian dollars have made gains against the greenback. The Aussie is currently worth $0.8785. Earlier this week the Aussie hit a nine-month trough of $0.8663. The kiwi has recovered to $0.7866 after hitting a 14-month low of $0.7708.

It will now depend of jobs data due from the US if the dollar is to regain the six-year high of 110.09 yen reached earlier in the week.