By Hiroyuki Kachi
The dollar was flat against its peers during Asia trade Friday, with investors reluctant to make major moves just days away from the U.S. presidential election.
Around 0450 GMT, the U.S. dollar was changing hands at Y103.06, compared with Y102.99 late Thursday in New York. The euro weakened to $1.1094 from 1.1104 late Thursday.
The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was up 0.05% at 87.68.
Amid uncertainties over the U.S. presidential race, the dollar weakened earlier in the midmorning session slipping as low as Y102.83. But the dollar stayed above the Y103-threshhold later in the session, with dip buying kicking infrom Japanese corporate players for the purpose of regular commercial trade settlement.
"Investors are waiting for U.S. jobs data for now and then U.S. presidential election," said Kyosuke Suzuki, head of FX and money market sales department at Societe Generale in Tokyo.
"I think investors are now shifting their focus from December rate increase to what [the Federal Reserve] will do next," said Mr. Suzuki, adding that investors have already priced in the Fed's action within this year.
For the dollar to break above its long-term resistance of Y105, "at least we need to clear today's jobs data before U.S. election outcome without any surprises... and then we need to see what signal comes from the Fed in December," about the future tightening, said Mr. Suzuki.
But with many investors now focusing much of their attention on the U.S. election outcome, the currency market may show muted reaction to the jobs report, which is usually closelywatched as a clue to the Fed's rate decision.
Every development in opinion poll results looks set to spark jitters among investors, said says Kumiko Ishikawa, senior FX analyst at Gaitame.com Research Institute. Even if jobs data remain strong, the dollar "will very likely rise only briefly and then trim those gains," she said.
The Australian dollar gained to intraday highs of $0.7697 and Y79.40 shortly after the release of strong Australian retail sales, which rose in September at a faster pace than Street forecasts. But the Aussie dollar lost earlier gains later in the session, respectively to $0.7681 and Y79.18.
In other currency trading, the euro was lower at Y114.35 midday from Y114.34 late Thursday.
Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT
Latest Previous %Chg Daily Daily %Chg
Dollar Rates Close High Low 12/31
USD/JPY Japan 103.06-07 102.98-99 +0.08 103.21 102.85 -14.32
EUR/USD Euro 1.1093-96 1.1105-08 -0.11 1.1112 1.1089 +2.15
GBP/USD U.K. 1.2464-66 1.2462-64 +0.02 1.2482 1.2456 -15.41
USD/CHF Switzerland 0.9751-55 0.9738-42 +0.13 0.9756 0.9734 -2.66
USD/CAD Canada 1.3397-402 1.3394-99 +0.02 1.3402 1.3387 -3.17
AUD/USD Australia 0.7680-84 0.7679-83 +0.01 0.7694 0.7673 +5.42
NZD/USD New Zealand 0.7305-11 0.7337-43 -0.44 0.7344 0.7306 +6.95
EUR/JPY Japan 114.32-36 114.34-38 -0.02 114.54 114.19 -12.58
Source: Tullett Prebon
Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
(END) Dow Jones Newswires
November 04, 2016 01:31 ET (05:31 GMT)
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