Reuters: US Dollar Report: FOREX-Yen gains after dismal U.S. jobs data

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FOREX-Yen gains after dismal U.S. jobs data Jun 1st 2012, 13:22 Tweet Share this Email Print Fri Jun 1, 2012 9:22am EDT * Euro hits 23-month low vs dollar on Spanish bank concerns * Safe-haven yen rises, market becoming wary of intervention * U.S. economy added only 69,000 jobs in May, weakest in a year By Wanfeng Zhou NEW YORK, June 1 (Reuters) - The yen rose on Friday, hitting its strongest in more than a decade against the euro and a 3-1/2-month high versus the dollar after much-weaker-than-expected U.S. jobs data and worries about Spain's banks prompted investors to seek safety. But the Japanese currency later trimmed most of its losses, with traders citing market rumors of intervention by Japanese authorities to weaken the yen. Japan's Ministry of Finance declined to comment. Traders said it was just talk and there was no sign of actual intervention. The dollar briefly jumped to 78.27 yen from a session low of 77.65 hit after the weak U.S. jobs data. It was last at 78.13 yen, down 0.3 percent on the day. Brown Brothers Harriman strategist Marc Chandler said there was talk in the market of Japan checking rates but said there was no evidence of actual intervention. "It just shows how much nervousness is out there right now," he said. Employers created a paltry 69,000 jobs last month, the Labor Department said on Friday, the fewest since May last year and well below the median expectation in a Reuters poll of 150,000. The data added to a slew of recent weak data suggesting the U.S. economic recovery was faltering. "It's pretty horrid but not unexpected. What we are seeing is the lingering effects of higher gasoline prices earlier in the year. That dampened demand and made employers much more cautious," said Boris Schlossberg, director of FX Research at GFT in Jersey City, New Jersey. "For now, the risk currencies remain very much under pressure because the last hope of the bulls was the U.S. economy and it is showing signs of slowdown just like the rest of the world." The euro briefly fell to a session low of $1.2286 after the jobs data, a new 23-month low, before recovering. It last traded at $1.2348, down 0.1 percent on the day. Tweet this Link this Share this Digg this Email Reprints Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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