* Upbeat U.S. non-farm payrolls data supports dollar
* Dollar gains against euro on higher U.S. yields
* Yen weaker against dollar despite GDP revision
(Updates prices, changes byline, dateline, previous LONDON)
By Sam Forgione
NEW YORK, June 9 The dollar rose against a
basket of major currencies on Monday in the wake of last week's
sturdy U.S. jobs report, with bids supported by higher U.S.
government bond yields compared to those of European
The dollar extended gains against the euro after the
European Central Bank unveiled its latest monetary policy
measures to combat deflation last week, which included cutting
its main rates to record lows.
"People are feeling that the risk versus the reward isn't
there in the euro," said Douglas Borthwick, managing director at
Chapdelaine Foreign Exchange in New York.
He said traders feared a bigger drop in the euro since low
interest rates in the euro zone did not reflect risks inherent
in the region, including high debt ratios. German Bunds
outperformed their U.S. counterparts,
driving the 10-year yield gaps to 2005 and 2010 levels
Benchmark 10-year U.S. Treasury notes were last
down 8/32 to yield 2.624 percent.
The dollar also held gains broadly after the government said
Friday the U.S. economy added 217,000 non-farm jobs and brought
employment to its pre-recession levels, indicating the economy
had snapped back from a harsh winter.
The U.S. dollar index, which measures the U.S.
currency against a basket of six major currencies, was last up
0.31 percent at 80.664. The euro was last down 0.41
percent against the dollar at $1.3587. The dollar was up 0.45
percent against the Swiss franc to trade at 0.8973
That was still some distance, however, from a four-month low
of $1.3503 hit last Thursday after the ECB announced its
monetary stimulus measures. The dollar was last up 0.06 percent
against the Japanese yen at 102.53.
The dollar's strength against the euro after the ECB
measures broadened to include strength against other currencies,
including the yen, despite a big upward revision of
first-quarter Japanese growth.
Japan's economy grew an annualised 6.7 percent in the first
quarter, data showed on Monday, up sharply from an initial
reading of a 5.9 percent rise, and confirmed the fastest pace of
growth since July-September 2011. The data beat a median market
forecast for GDP to grow 5.6 percent.
"The data is consistent with what we all know already, which
is that the country has been very resilient," said Kathy Lien,
managing director of FX strategy for BK Asset Management.
Lien said bank holidays in Australia and some European
countries kept volatility low, while scheduled speakers from the
Federal Reserve, including James Bullard, Daniel Tarullo, and
Eric Rosengren were likely to reiterate the central bank's
message that it would not tighten monetary policy this year.
(Editing by Bernadette Baum)