Dollar higher before U.S. jobs data

April 2, 2011 - 0:0

The dollar rose against major rival currencies on Friday before publication of monthly U.S. jobs data, while the euro firmed as traders digested Ireland's latest bailout of its banks.

In London morning trade, the European single currency edged up to $1.4156 from $1.4155 late in New York on Thursday.
The euro meanwhile struck a fresh 10-month high of 118.67 yen. The dollar climbed to 83.68 yen from 83.20 yen on Thursday.
Traders around the globe were keenly awaiting U.S. non-farm payrolls figures due Friday, which will paint a clearer picture of the state of the world's biggest economy.
""The situation on the US labour market should be the most likely indicator of when the Fed will finally abandon its ultra-expansionary monetary policy,"" said Commerzbank analyst Ulrich Leuchtmann.
Western central banks are looking to raise their interest rates from record low levels as rising commodity prices fuel global inflation.
The European central bank is widely expected to hike its borrowing costs next week, while the Federal Reserve and Bank of England may follow in the next few months, according to experts.
Elsewhere, foreign exchange dealers were Friday assessing eurozone debt developments in Ireland and Portugal.
""The euro remains stable (against the dollar) following the fifth attempt by the Irish government to draw a line in the sand in regard to the recapitalisation of the Irish banking sector, which certainly looks more credible than previous attempts and has been given the explicit backing of the ECB,"" said Derek Halpenny, European head of global currency research at The Bank of Tokyo-Mitsubishi UFJ.
Ireland's central bank on Thursday ordered a drastic overhaul of the eurozone nation's stricken banking sector as the cost of bailing out its lenders was set to top 70 billion euros ($99 billion).
The Central Bank of Ireland said four lenders needed to raise an extra 24 billion euros after it carried out vital stress tests on their ability to withstand another financial crisis.
The additional capital would be covered by the 35 billion euros provided for the banks as part of Ireland's huge 85-billion-euro debt rescue agreed in November with the European Union and the International Monetary Fund (IMF).
The shake-up of the banking sector comes at a key stage in the eurozone debt crisis as fears mount that fellow eurozone member Portugal could be next for an international bailout, following Greece and Ireland last year.
Debt-stressed Portugal on Friday raised 1.645 billion euros ($2.33 billion) in one-year bonds, paying a high rate of interest but still much less than expected, to raise the funds.
In London on Friday, the euro changed hands at $1.4156 against $1.4155 late in New York on Thursday, at 118.51 yen (117.78), £0.8842 (0.8831) and 1.3054 Swiss francs (1.3016).
The dollar stood at 83.68 yen (83.20) and 0.9218 Swiss francs (0.9194). The pound was at $1.6015 (1.6027).
On the London Bullion Market, the price of gold fell to $1,435.30 an ounce from $1,439 late Thursday.
(Source: AFP)