* Euro under pressure, but holding above last week's
* EUR/USD downtrend still seen intact on diverging monetary
* China to unveil reform agenda for next 10 years
By Lisa Twaronite and Ian Chua
TOKYO/SYDNEY, Nov 12 The dollar rose to a more
than seven-week high against the yen in Asia on Tuesday,
coasting on heightened expectations that the U.S. Federal
Reserve will reduce its stimulus after last week's bullish jobs
Speculation that the Fed might soon taper its $85
billion-a-month bond-buying programme sooner rather than later
rose after U.S. employers added more than 200,000 new jobs last
month. A Reuters poll of U.S. primary dealers - the large
financial institutions that do business directly with the Fed -
showed more of them see the central bank rolling back some of
its asset purchases before March.
Markets were subdued after partial market holidays in
various centres around the world to observe Armistice day on
"The main story today is broad-backed U.S. dollar strength,
led by dollar/yen, with good demand out of Tokyo behind it,"
said Sue Trinh, a senior currency strategist at RBC Capital
Markets in Hong Kong.
"Dollar/yen's upward march back toward the 100 level seems
to be the main focus of our session," she said. The dollar last
traded above 100 yen on Sept. 11, according to Reuters data.
The dollar rose as high as 99.59 yen, its highest
since Sept. 20, and was last up about 0.4 percent at 99.55 yen.
The euro erased its earlier modest gains but held above lows
set last week, when it suffered a heavy selloff on Thursday
after the European Central Bank cut its main rate to a
record-low 0.25 percent.
The common currency shed about 0.1 percent to $1.3397
but remained above Monday's low of $1.3343, according to Reuters
data, and well above its two-month low of $1.3295 hit on
It is still about 3 percent below a two-year peak of $1.3833
set last month.
The euro's recovery off its lows, and any bounces higher,
offer potentially good opportunities to enter new short
positions in the common currency against the dollar and
sterling, as well as versus the higher-yielding commodity bloc
currencies, analysts at BNP Paribas wrote in a client note.
With the Fed poised to taper its stimulus and the ECB
committed to easy policy for now, analysts expect diverging
monetary outlooks in the U.S. and Europe to keep pressure the
euro against the dollar.
The dollar index rose about 0.1 percent to 81.174,
moving back towards its nearly two-month peak of 81.482 struck
In Asia, investors will be keeping an eye on China where the
country's leaders are slated to unveil a reform agenda for the
next decade on Tuesday, as it seeks to boost economic growth
while preserving stability.
The Australian dollar was down about 0.3 percent at
$0.9335 after a measure of Australian business confidence pulled
back from 3-1/2-year highs in October as sales and profits