Investing.com - The yen weakened slightly in early Asian trade
on Friday, carrying over choppy trade on the bullish monetary
policy implications of a surprisingly strong weekly U.S. jobless
USD/JPY traded at 101.18, up 0.01%, in a narrow range of 101.15 -
101.19 in an Asian day light on data outside of the Bank of Japan
The Department of Labor said the number of individuals filing for
initial jobless benefits in the U.S. last week fell by 21,000 to a
seasonally adjusted 323,000, beating expectations for a decline of
9,000, which pushed the dollar higher that the Fed is moving closer
to tapering bond purchases.
The Federal Reserve said in its October policy meeting minutes
released this week that it might begin tapering the pace of its
USD85 billion in monthly bond purchases soon if conditions in the
labor market improve.
AUD/USD traded at 0.9236, up 0.02%, recovering from remarks late
Thursday in Asia by Reserve Bank of Australia Governor Glenn
Stevens that the central bank would intervene to lower the currency
"Overall, in this episode so far, the bank has not been convinced
that large-scale intervention clearly passed the test of
effectiveness versus cost.
But that doesn't mean we will always eschew intervention. In fact
open-minded on the issue," Stevens said.
"Our position has long been, and remains, that foreign exchange
intervention can, judiciously used in the right circumstances, be
effective and useful. It can't make up for weaknesses in other
policy areas and to be effective it has to reinforce fundamentals,
not work against them. Subject to those conditions, it remains part
of the toolkit."
EUR/USD traded at 1.3481, up 0.01%.
Comments from European Central Bank President Mario Draghi also
helped push the dollar in and out of negative territory In U.S.
trading on Thursday.
Draghi downplayed recent media reports that the ECB was actively
considering whether to cut deposit rates into negative territory,
which bolstered the euro and softened the dollar.
Also in Europe, data released earlier revealed that manufacturing
activity in the euro zone expanded in line with forecasts in
November, but service-sector activity declined unexpectedly.
The dollar index, which tracks the performance of the greenback
versus a basket of six other major currencies, was at 81.02, up
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