The dollar headed for its first weekly loss against the yen in three weeks before a U.S. payrolls report that may show the economy lost jobs every month in 2008 and the unemployment rate rose to a 16-year high.
The euro was set for a second weekly decline versus the British pound and the greenback as traders predict the European Central Bank will cut interest rates on Jan. 15 to the lowest level since 2005. South Korea’s won fell, reversing gains, after the central bank reduced borrowing costs to a record low and said the economy is “deteriorating rapidly.”
“There’s a high likelihood that the jobs data will be very bad,” said Yuji Saito, head of the foreign-exchange group in Tokyo at Societe General SA, France’s second-largest bank by market value. “It’s a reason to sell the dollar.”
The dollar traded at 91.17 yen as of 8 a.m. in London, versus 91.83 at the end of last week. It touched 90.85 yesterday, the lowest since Jan. 2. The U.S. currency strengthened to $1.3672 per euro from $1.3702, poised for a 1.7 percent weekly gain. The dollar may drop to 90 yen and $1.3800 per euro today, Saito said.
Europe’s single currency fell to 89.78 pence from 90.06 pence yesterday. It declined to 124.64 yen from 124.96, and touched 124.11 yesterday, the lowest level since Dec. 22.
Against the yen, Australia’s dollar climbed 0.5 percent to 64.58 and New Zealand’s dollar rose 0.3 percent to 54.08 from late in Asia yesterday.
Korea’s won fell, after advancing as much as 1.2 percent, as the central bank cut its benchmark rate by a half-percentage point to 2.5 percent. The currency declined to 1,343 per dollar from 1,333 yesterday.
The euro was set for a second weekly decline versus the British pound and the greenback as traders predict the European Central Bank will cut interest rates on Jan. 15 to the lowest level since 2005. South Korea’s won fell, reversing gains, after the central bank reduced borrowing costs to a record low and said the economy is “deteriorating rapidly.”
“There’s a high likelihood that the jobs data will be very bad,” said Yuji Saito, head of the foreign-exchange group in Tokyo at Societe General SA, France’s second-largest bank by market value. “It’s a reason to sell the dollar.”
The dollar traded at 91.17 yen as of 8 a.m. in London, versus 91.83 at the end of last week. It touched 90.85 yesterday, the lowest since Jan. 2. The U.S. currency strengthened to $1.3672 per euro from $1.3702, poised for a 1.7 percent weekly gain. The dollar may drop to 90 yen and $1.3800 per euro today, Saito said.
Europe’s single currency fell to 89.78 pence from 90.06 pence yesterday. It declined to 124.64 yen from 124.96, and touched 124.11 yesterday, the lowest level since Dec. 22.
Against the yen, Australia’s dollar climbed 0.5 percent to 64.58 and New Zealand’s dollar rose 0.3 percent to 54.08 from late in Asia yesterday.
Korea’s won fell, after advancing as much as 1.2 percent, as the central bank cut its benchmark rate by a half-percentage point to 2.5 percent. The currency declined to 1,343 per dollar from 1,333 yesterday.