Dollar Steady Against Yen After Sliding on Jobs Data

   By Hiroyuki Kachi

        The dollar was steady against the yen in quiet Asian trade Monday, after regaining some of the ground it lost following Friday's weaker-than-expected U.S. jobs data.

        Around 0250 GMT, the U.S. currency was at Y119.10, compared with Y118.93 late Friday in New York.

        Trading activity in Asia remained subdued with many traders still away from their desks for the Easter vacation and other public holidays. While the disappointing U.S. jobs report helped push back investors' expectations for when the Federal Reserve will raise interest rates, the dollar found downside support against the yen to stabilize above Y119 following Friday's falls.

        Japanese importers and institutional investors were among the investors eager to buy the greenback on dips. Market participants also noted some indirect support for the dollar against the yen via selling of the Japanese currency against the euro.

        Friday's tumble in the dollar was the biggest fall in almost two weeks following U.S. labor data for March that showed nonfarm payrolls grew by 126,000, about half the increase forecast by economists in a Wall Street Journal survey.

        "There is speculation that the consensus about a U.S. rate increase is now being pushed back to December from September," a change in views that could lower the dollar in currency trade, said Mizuho Securities FX strategist Kenji Yoshii.

        Even so, Mr. Yoshii said he didn't "get the impression that the USD is falling very much." He added that larger falls in the dollar are likely being prevented by a cycle in which a weaker dollar causes U.S. stocks to rise, suggesting greater buoyancy in risk-taking sentiment that results in selling away from the perceived safety of the yen and a stronger dollar.

        IG Securities market analyst Juniichi Ishikawa said in a note that the dollar could fall below Y118 if U.S. stocks soften this week. Mr. Ishikawa said the reaction of U.S. shares to Friday's downbeat labor data could push the dollar down against the yen later Monday if the shares fall. U.S. indicators, including today's ISM non-manufacturing business index, and U.S. corporate earnings will also be under the spotlight this week.

        "We are going to have a week of closely monitoring the after effects of the lackluster U.S. data and the impact of (U.S.) quarterly earnings," he said.

        In other currency trade, the euro was at $1.0981 from $1.0972, while the common currency was at Y130.80 from Y130.50.

        The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was unchanged at 86.64.

        Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com

        (END) Dow Jones Newswires

        April 05, 2015 23:43 ET (03:43 GMT)

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