Tokyo - The dollar firmed against the yen in Asia on Tuesday after selling on last week's weak US jobs report ran its course.
The greenback was at 119.58 yen in Tokyo trade, up from 119.52 yen in New York and 119.05 yen in Tokyo earlier on Monday.
Buying by Japanese importers helped prop up the US unit, but it lacked the power to give a significant boost to the currency.
“There is no buying incentive to push for rises past 120 yen,” a dealer at a major Japanese bank told Jiji Press.
Expectations for a US rate hike any time soon took a blow after the Labour Department said the economy added just 126 000 jobs in March, half of what was expected and the weakest growth since December 2013.
Investors were also staying away from aggressive positions with the Bank of Japan set to hold a two-day policy meeting this week after figures showed inflation was flat, sparking speculation of further monetary easing measures.
The euro firmed to $1.0937 and 130.78 yen on Tuesday from $1.0928 and 130.60 yen in US trade.
Despite the pick-up Tuesday, dollar-buying was also tempered by a fall in a measure of US service sector activity as well as dovish comments from New York Federal Reserve president William Dudley, who called US economic growth “quite weak”.
Dudley stressed in a speech in New Jersey that given the slowdown, the timing of any move to increase interest rates “remains uncertain because the future evolution of the economy cannot be fully anticipated”.
He added it “will be important to monitor developments to determine whether the softness in the March labour market report evident on Friday foreshadows a more substantial slowing in the labour market than I currently anticipate.”
The Australian dollar fell on speculation Australia's central bank will cut its key interest rate to a record low on Tuesday.
The Aussie was quoted at 76.07 cents, down from 76.24 cents on Monday afternoon.
AFP