REFILE-FOREX-Dollar hits two-week high vs yen after U.S. jobs data
* ADP report showed U.S. added 162,000 private sector jobs * Euro expected to hold above $1.28 * Investors unceratin about Spanish bailout By Gertrude Chavez-Dreyfuss NEW YORK, Oct 3 (Reuters) - The dollar climbed to a two-week high against the yen on Wednesday after data showed U.S private sector jobs increased by more than expected last month, fueling optimism that the world's largest economy may be on a more stable path to recovery. U.S. private sector employers added 162,000 jobs in September, exceeding consensus forecasts. August's private payrolls, however, were revised lower to 189,000 from the previously reported 201,000 jobs.. "Overall, the number is consistent with a slowly improving job market," said Omer Esiner, chief market analyst, at Commonwealth Foreign Exchange in Washington. Few analysts though would stake their bets on an ADP report many feel is not an accurate reflection of the U.S. labor market. The dollar rose as high 78.47 yen after the data, its highest since Sept. 20. It was last at 78.40 yen, up 0.4 percent on the day. Citing bankers, Jamie Coleman, currency strategist, at Forexlive.com in Boston noted an uptick in speculative demand for dollar/yen on an improving technical backdrop. "Jawboning from the new finance minister and threats of foreign bond buying by the Japanese authorities are helping improve sentiment toward the greenback," Coleman said. The euro, meanwhile, fell against the dollar, as investors grew uncertain about the prospects of Spain seeking a bailout, a move which would prompt the European Central Bank to buy Spanish bonds and boost the common currency. Prime Minister Mariano Rajoy on Tuesday quashed speculation the country could apply for a bailout as soon as this weekend. Most market participants though were convinced that Spain will eventually request aid. The single currency fell 0.1 percent to $1.2898, still well above the three-week low of $1.28035 hit on Monday and with the potential to test Tuesday's peak of $1.2968. "We expect Spain to apply for aid and relatively soon, within the next one to three weeks ... This will be a further relief for the euro but it's still not solving the underlying problems of the euro zone," said Richard Falkenhall, currency strategist at SEB in Stockholm. "It's reasonable to see people cutting back on short euro positions, but it's hard to believe that medium to long-term investors would be setting long euro positions." He said a Spanish bailout request would push the euro above $1.30, perhaps towards $1.35 but not further.
- U.S.' Kerry voices 'regret' to India over diplomat case |
- Washington, DC city council raises minimum wage to $11.50/hr in 2016
- China confirms near miss with U.S. ship in South China Sea
- Medical bills underlie 60 percent of U.S. bankrupts: study
- Mega Millions winners in Georgia, California to split $648 million |