Investing.com - The dollar gained against the yen on Thursday as investors began to turn their attention to the U.S. jobs report for February that some investors hope will underline expectations for further Federal Reserve interest rate hikes this year.
USD/JPY was up 0.47% at 114.00, not far from the two-week highs of 114.54 struck on Wednesday.
The low-yielding euro was also higher against the yen, with EUR/JPY rising 0.42% to 123.84.
The euro was flat against the dollar, with EUR/USD at 1.0869, close to the previous session’s one-month lows of 1.0824.
The single currency remained on the back foot after European Central Bank board member Benoit Coeure signaled Wednesday that the ECB will ease monetary policy this month.
Coeure said it was “vital” to stimulate economic growth and boost inflation after prices in the euro zone fell 0.2% in February.
The dollar received a boost after Wednesday’s ADP nonfarm payrolls report showed that the U.S. private sector added 214,000 new jobs last month, ahead of expectations for an increase of 190,000.
The upbeat data fueled hopes that Friday’s report would show similarly strong jobs growth.
Investors were also looking ahead to the Institute of Supply Management’s U.S. non-manufacturing index later in the day, with the employment component particularly in focus ahead of Friday’s government jobs report.
Meanwhile, the Australian dollar remained stronger, with AUD/USD up 0.27% at 0.7312, the highest level since December 31.
The Aussie remained supported after unexpectedly robust data on fourth quarter growth on Wednesday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady near one-month highs at 98.28.