* Euro steady against yen after touching more than 3-year
* Aussie skids, pressured after this week's RBA cut
By Lisa Twaronite
TOKYO, May 10 The dollar remained at a lofty
perch against its Japanese counterpart on Friday, after breaking
above the 100 yen level in the previous session for the first
time since April 2009.
The dollar was buying 100.60 yen after rising as high
as 100.79 yen on the EBS trading platform on Thursday, helped by
signs of further improvement in the U.S. labour market and
renewed debate by U.S. Federal Reserve officials about scaling
back the central bank's asset purchases.
"It was not so much the risk-on trade of selling the yen,
but rather a case of broad-based dollar strength. That was what
struck me as unusual," said Andrew Wilkinson, chief economic
strategist at Miller Tabak & Co in New York.
"As you might expect, there seemed to be a tremendous amount
of stops to sell the yen, should it reach 100, so the selling
became aggravated," he added.
The dollar index, which measures the U.S. unit
against a basket of currencies, slipped 0.2 percent to 82.679,
but still remained above a more than two-month low of 81.331
plumbed earlier this month.
Data on Thursday showed U.S. claims for unemployment
benefits fell to their lowest level since January 2008,
suggesting the Fed is making progress in brightening the
Some economists expect the central bank to reduce the $85
billion a month of bonds it now buys as unemployment approaches
its 6.5 percent target. Fed officials debated the merits and
timing of the central bank's bond buying program on Thursday.
The euro was steady against the yen, with the
common currency buying 131.11 yen after rising to a peak of
131.75 yen on Thursday, its highest since January 2010.
The euro was also steady against the greenback,
buying $1.3036, after dropping to $1.3010 on EBS on Thursday,
its lowest since April 29.
The European Central Bank cut its main rate to 0.5 percent
The Australian dollar licked its wounds, buying
$1.0083, after having fallen as low as $1.0046, its weakest
since late June.
The Aussie has been under pressure since Tuesday, when the
Reserve Bank of Australia slashed interest rates to a record
The RBA will release a statement on monetary policy later on
A Reuters poll of 52 analysts published on Friday but taken
before the Aussie's slump put the unit at $1.0300 in one month,
before edging to parity by this time next year.