The dollar moved narrowly around ¥101.50 in Tokyo trading Thursday as market players were sidelined ahead of closely followed economic events.
At 5 p.m., the dollar was quoted at ¥101.48-50, up from ¥101.21-26 at the same time Wednesday. The euro stood at $1.3524-3525, up from $1.3509-3510, and at ¥137.21-29, up from ¥136.75.76.
In overseas trading Wednesday, the dollar fell below ¥101 again due to weaker than expected results of Automatic Data Processing Inc.’s private-sector employment report. U.S. jobs increased by 175,000 in January after an increase of 227,000 in the previous month, the report said.
But the dollar later regained ground as the Institute for Supply Management’s nonmanufacturing index for January grew stronger than expected to 54.0.
The dollar maintained its resilience in Tokyo trading Thursday.
Throughout the day the dollar moved in step with key Japanese stock price indicators, which finished lower after erasing early gains, traders said.
ADP’s data “are not reliable” as a material to predict the outcome of the U.S. Labor Department’s monthly jobs reports because the two data sets often show different results, an official at major foreign bank said.
Meanwhile, many players welcomed the improvement in the ISM nonmanufacturing index. A major currency market strategist said the result “helped reduce risk aversion” among investors.
Players are reluctant to make fresh moves ahead of the Labor Department data, due out Friday, and the European Central Bank’s monetary policy meeting later Thursday, traders said.