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FOREX-Dollar dips vs yen, steadies vs euro before US data

Published 12/03/2009, 08:19 PM
Updated 12/03/2009, 08:21 PM

* Dollar dips vs yen on profit-taking before US data

* Japanese exporters' dollar offers seen above 88.50 yen

* Euro trims gains made on ECB's hint at future exit strategy

By Rika Otsuka

TOKYO, Dec 4 (Reuters) - The dollar dipped against the yen on Friday as traders took profits on the greenback's sharp rebound from a 14-year trough ahead of the U.S. government's monthly employment report later in the day.

The euro slipped against the yen after climbing sharply versus the Japanese currency the previous day when the European Central Bank suggested that it would gradually withdraw emergency liquidity from the system.

The European single currency on Thursday neared a 16-month high against the dollar around $1.5140 after ECB President Jean-Claude Trichet said the next 12-month refinancing operation for banks would be the last.

But the euro soon lost steam as Trichet said liquidity moves should not be seen as any kind of a signal on interest rates. The ECB left rates at record low of 1.0 percent at Thursday's meeting.

Market players' attention has now shifted to U.S. monthly jobs data for November.

"The market would react more to stronger-than-expected numbers as such figures would improve investor risk appetite, likely to trigger buying in higher-yielding currencies," said Tsutomu Soma, senior manager of foreign securities department at Okasan Securities.

The dollar fell 0.2 percent from late U.S. trade to 88.05 yen, having recovered from a 14-year low of 84.82 yen hit last week on trading platform EBS.

The U.S. currency rose 1 percent against the yen the previous day after Bank of America said it would repay $45 billion of taxpayer bailout funds, boosting investor confidence.

Traders said Japanese exporters' dollar offers were lined up above 88.50 yen, keeping players hesitant about chasing the dollar higher.

The euro was barely moved against the greenback at $1.5051, while it dipped 0.3 percent versus the yen to 132.53 yen. (Editing by Edwina Gibbs) ((rika.otsuka@thomsonreuters.com; +81-3-6441-1874; Reuters Messaging: rika.otsuka.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))

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