The dollar was poised for its biggest weekly gain since April versus the yen before a U.S. report predicted to show employers added more than 200,000 jobs for a fourth month in May in a recovery of the labor market.
The euro had its biggest advance since March versus the dollar yesterday as the market rejected the European Central Bank’s unprecedented effort to weaken the single currency. Pacific Investment Management Co. said it was neutral on the euro and flows into the region will likely continue. The Australian dollar is set for back-to-back weekly gains before data on June 8 estimated to show imports and exports increased in China, the nation’s largest trading partner.
“The U.S. economy is still on a smooth recovery path, and the payrolls data should support that view,” said Yuki Sakasai, a currency strategist in New York at Barclays Plc. “Payrolls will be much more important for determining dollar-yen direction than the ECB decision was.”
The dollar was little changed at 102.32 yen at 11:10 a.m. in Tokyo, headed for a 0.5 percent advance this week. The yen traded at 139.82 per euro from 139.90.
Europe’s shared currency was at $1.3662, little changed from yesterday when it strengthened 0.5 percent, the biggest gain since March 6. The euro initially fell yesterday to $1.3503, the lowest level since Feb. 6.
The U.S. added 215,000 jobs last month after a 288,000 gain in April, the Labor Department will say today, according to the median forecast in a Bloomberg News survey. That just above this year’s average.
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