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Forex - Dollar pushes higher against yen after fall on U.S. job data

Published 09/07/2015, 03:51 AM
© Reuters.  Dollar regains ground against yen after Friday's falls on mixed U.S. jobs report
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Investing.com - The dollar regained some lost ground against the yen on Monday, pushing higher after Friday’s mixed U.S. jobs report failed to offer much clarity on the timing of an initial rate hike by the Federal Reserve.

USD/JPY was last up 0.24% to 119.29, off Friday’s lows of 118.58.

The Labor Department reported Friday that the U.S. economy added 173,000 jobs last month, slowing after an upwardly revised gain of 245,000 in July. It was the smallest increase in employment in five months and was below expectations for 220,000.

The unemployment rate ticked down to 5.1%, its lowest level since April 2008 from 5.3% in July, while average hourly wages rose by a stronger-than-expected 2.2%.

The jobs report added to uncertainty over whether the Fed will decide to raise short term interest rates later this month.

The dollar was little changed against the euro, with EUR/USD at 1.1155.

The single currency remained on the back foot after the European Central Bank indicated last week that it could scale up its quantitative easing program amid increased risk to the region’s inflation outlook from slowing growth in China and falling oil prices.

ECB President Mario Draghi said the bank’s asset purchase program provided sufficient flexibility to adjust the size, composition and duration of the program.

The ECB launched its €60 billion per month quantitative easing program in March after the euro area briefly slid into deflation and it is due to run until September 2016.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was fluctuating between small gains and losses at 96.25.

Trade volumes were expected to remain light on Monday, with U.S. markets closed for the Labor Day holiday.

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