The US dollar posted its biggest five-day gain versus the yen in two weeks as fewer Americans lost jobs last month than economists forecast, increasing the likelihood that the US economic recovery remains on track.
The euro gained against the Japan’s currency as Greece’s prime minister prepares to meet with leaders in Paris and Washington to discuss resolving its debt crisis. The yen fell versus South Africa’s rand and Canada’s dollar after the US employment report spurred demand for riskier assets.
“The payrolls number was big from a psychological point of view,” said Sebastien Galy, a currency strategist at BNP Paribas SA in New York. “It’s the end of the double dip scenarios. ”
The US dollar rose 1.5 percent this week to ¥90.28, from ¥88.97 on Feb. 26. The euro traded at US$1.3626, compared with US$1.3631, and gained 1.7 percent to ¥123, from ¥121.26.
Japan’s currency this week fell 5.7 percent, the biggest drop since the five days ended April 3, to 12.1812 per rand. Against Canada’s dollar the yen fell 3.8 percent, the biggest decline since the five days ended Dec. 4.
The euro gained 1.4 percent against the yen this week as Greece’s parliament on Friday gave final approval to the government’s 4.8 billion euros (US$6.5 billion) of additional cuts to the EU’s biggest budget deficit.
The pound tumbled to a 10-month low against the US dollar after opinion polls showed the UK may elect its first minority government since 1974, hampering efforts to curb the nation’s record budget deficit.
The pound fell 0.8 percent against the US dollar in the week to reach US$1.5113 as of 5:30pm in London on Friday. It slid to US$1.4784 on Monday, the lowest level since May 1. It weakened 0.6 percent to £0.8996 per euro.
Asian currencies advanced this week, led by South Korea’s won and Thailand’s baht, as Greece took steps to cut its budget deficit and signs regional central banks will gradually raise interest rates prompted investors to buy higher-yielding assets.
The won climbed 1.7 percent from the end of last week to 1,140.3 per US dollar as of the 3pm close in Seoul, the strongest level since Jan. 21, according to data compiled by Bloomberg. Thailand’s baht rose 1.2 percent to 32.64 and Malaysia’s ringgit climbed 1.1 percent to 3.3635.
The New Taiwan dollar fell 0.1 percent on Friday to NT$32.02 against the greenback as of the 4pm close, reversing an earlier advance of as much as 0.3 percent, according to Taipei Forex Inc.
The NT dollar climbed 0.2 percent for the week.
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