Tokyo, May 27: The dollar eased against the yen on Thursday, erasing earlier gains as traders grew nervous about whether upcoming US jobs data would back market expectations that US interest rates will rise in June. Traders said worries were mounting that current high oil prices could hurt the US economy, and possibly delay a rate rise by the Federal Reserve. "The market has already factored a (US) rate hike in June but nobody knows if they will actually act," said Katsunori Kitakura, manager of the treasury department at Chuo Mitsui Trust and Banking.
"Unless the June 4 jobs data show strong numbers, it's difficult to buy the dollar." The US currency rose to a session high of 112.13 yen in early Tokyo trade but eased back to around 111.54 yen by 10:40 p.m. It fetched 111.71/79 in late U.S. trade. The Euro inched up to $1.2134/39 from $1.2110/16 in late New York trade. The dollar fell as far as 111.24 yen and $1.2145 per euro on Wednesday, taking its cue from weaker-than-expected figures for new home sales and durable goods orders.
US new home sales in April posted the biggest one-month decline since January 1994, while orders for big-ticket durable goods fell 2.9 percent. Bureau Report