* Cross/yen pairs rise as Tokyo equities push higher
* Dollar index slips, inches away from 7-week high
* Kiwi hits 2-week high following strong local jobs data
By Masayuki Kitano
SINGAPORE, Nov 6 The euro edged higher versus
the yen on Wednesday as a rise in Tokyo shares bolstered risk
sentiment and helped knock the Japanese currency lower, while
the New Zealand dollar rose following strong local jobs data.
Currency traders said the yen fell on the crosses as
Japanese equities pushed higher after Japan's public broadcaster
NHK said Toyota Motor Corp would lift its earnings
"It seems to be a risk-on move," said a trader for a
Japanese bank in Singapore.
The euro rose 0.5 percent to about 133.41 yen,
edging away from a one-month low near 132.37 yen set on Tuesday.
The yen slipped broadly, with the dollar rising 0.2 percent
to about 98.72 yen.
The euro also regained some footing against the dollar,
rising 0.3 percent to $1.3518, pulling away from a
seven-week low of $1.3442 set on Monday.
The dollar index, which measures the greenback's value
against a basket of currencies, slipped 0.3 percent to 80.516
, down from a seven-week high of 80.930 set on Monday.
The dollar index gave back the gains it made on Tuesday,
when an upbeat U.S. report kept alive some expectations the
Federal Reserve might scale back stimulus as soon as next month.
An industry report on Tuesday showed U.S. service-sector
business activity picked up in October and firms took on
workers, an encouraging outcome in a month that saw a political
standoff force a partial government shutdown for 16 days.
In contrast, speculation the European Central Bank (ECB)
could cut interest rates at Thursday's policy meeting, or at
least sound dovish, has weighed on the euro.
After data last week showed a worrying drop in inflation,
some analysts suspect the ECB might be forced to add more
stimulus soon in order to protect growth.
"We expect the ECB to soon make clear its intentions
regarding arresting deflation concerns," analysts at Barclays
Capital wrote in a note to clients.
"We anticipate a looser monetary stance to be adopted at the
December meeting, but the ECB's intentions to be aired ahead of
it. We remain short EUR via a put spread."
Sterling stayed firm after data showed the UK services
sector expanded at its fastest pace in 16 years.
Sterling rose 0.3 percent to $1.6094, adding to its
0.5 percent gain on Tuesday.
Investors also warmed to the New Zealand dollar after strong
local jobs data strengthened the case for the central bank to
start raising interest rates next year.
"All in all, it's a good set of numbers and certainly
supportive of the market's expectations for the RBNZ to commence
hiking rates in early 2014," said Tom Kennedy, economist at
The kiwi dollar rose 0.4 percent to $0.8399 and set
a two-week high.