Daily currency report

Overview

The dollar hovered near a six-week high against the yen in thin trading after last week's surprisingly strong US jobs data made investors think twice about a near-term US interest rate cut.

GBP
The sterling remained relatively unchanged from late last week especially with British markets closed on Easter Monday.

USD
The greenback remained near the top of its recent range against the euro in the first trading session after the release of a report showing the US economy added 180,000 jobs last month, above economists' forecasts. That and a decline in the jobless rate eased concern about a manufacturing slump and suggested the Federal Reserve may not need to cut interest rates to jump-start a sputtering economy.

EUR
The European Central Bank is expected to hold euro zone rates at 3.75 per cent but is seen preparing the market for a quarter-point rise at its next meeting in June. Trade was thin, though, with most European markets closed on Easter Monday.

JPY
Koji Fukaya, senior currency strategist at Deutsche Bank in Tokyo, said Japanese exporters are likely to cap dollar gains near 119.50 yen. Traders have in recent week rebuilt carry trades that involve borrowing yen cheaply to fund purchases of higher-yield currencies and assets.

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