Friday October 3, 2014 - 01:47:18 GMT
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Reuters - www.reuters.com
FOREX-Dollar rebounds vs yen, U.S. nonfarm payrolls awaited
* Dollar/yen rebounds modestly as Tokyo shares bounce
* Further upside for dollar seen if jobs data proves firm
By Shinichi Saoshiro
TOKYO, Oct 3 (Reuters) - The dollar rebounded modestly against the yen on Friday from steep losses overnight, while investors awaited U.S. non-farm payrolls data later in the day for further relief.
A bounce in Tokyo stocks eased demand for the safe-haven Japanese currency, helping the dollar. The dollar had fallen from six-year highs as a slide in global equities had increased demand for the yen.
Earlier in the week the U.S. currency had rallied to its six-year high versus the yen and a two-year peak against the euro on well-set views of monetary policies in the United States and those of the euro zone and Japan diverging.
The dollar edged up 0.3 percent to 108.69 yen, off the week's trough of 108.01 hit overnight but still far from the six-year peak of 110.09 touched on Wednesday.
The euro was little changed at $1.2659 after putting on some distance overnight from its two-year low of $1.2571.
The euro gained on Thursday after European Central Bank President Mario Draghi sounded less dovish than some anticipated, giving no indication of imminent stimulus after the central bank's policy meeting.
"What we saw is adjustment of long positions in the dollar. If the non-farm payrolls tonight is a little stronger than forecast, it will prompt buy-backs for the dollar," said Junichi Ishikawa, a market strategist at IG Securities in Tokyo.
"The euro's rebound did not look convincing even as Draghi did not sound as dovish as expected. The fundamentals remain unchanged - the ECB is seen being forced to adopt QE (quantitative easing) down the road, while the Fed appears poised to hike rates if conditions allow."
After a week of mixed data out of the United States, the September nonfarm payrolls data due at 2130 GMT could further fuel expectations of an early rate hike by the Fed.
According to a Reuters poll of economists, nonfarm payrolls are seen coming in at 215,000, a big jump from August.
The Australian and New Zealand dollars also held on to gains won back from the greenback as the U.S. currency struggled against the euro and the yen.
The Aussie fetched $0.8788 after bouncing from a nine-month low of $0.8663 reached earlier in the week.
The kiwi traded at $0.7877 after touching a 14-month trough of $0.7708 this week.
Tokyo's Nikkei was up about 0.2 percent after plunging 2.6 percent on Thursday.
(Editing by Eric Meijer)
© Thomson Reuters 2014. All rights reserved.
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