Home Forex Dollar Rises Against the Yen After Positive U.S. Jobs Report

Dollar Rises Against the Yen After Positive U.S. Jobs Report

Close up of the Japanese Yen currency note against US Dollar on white background

The dollar rose as much as 0.32% in early-morning trade on Monday to hit a two-month high against the yen. Reports from the Federal Reserve helped support the greenback after the Fed reaffirmed plans for a third interest rate hike in 2017. U.S. jobs report forecasts also helped strengthen the greenback as jobs are projected to grow faster-than-expected.

The economy added 222,000 job additions last month, according to reports from the Labor Department on Friday. Economists expected the economy to add 179,000 jobs.

Better-than-expected job additions helped offset a subdued inflation outlook. April and May’s jobs were revised upward, showing the economy added 47,000 more jobs than initially reported. Unemployment rose to 4.4% as more people are returning to work and looking for employment.

Investors are awaiting further economic indicators later in the week, with inflation and retail sales data being the main focal point this week. The data, expected on Friday, will come a day after China releases key trade data.

Japan’s core machinery orders fell unexpectedly for the first time in eight months in May, raising fears that the country’s recovery is starting to slow. The Bank of Japan reiterated its commitment to continue with the current stimulus plan until inflation levels reach the 2% target.

Unadjusted current account surplus fell to 1.654 trillion yen, missing forecasts of 1.796 trillion yen. Core machine orders fell 3.6% in May, missing expectations of a 7.7% gain on the month.

The U.S. dollar index is up 0.10% on Monday morning.

EUR/USD is down 0.06% on Monday morning. EUR/JPY is up 0.12% after climbing as much as 0.31% to hit a 17-month high earlier in the morning.

China’s economic data release for June was much anticipated by investors in early-morning trade in Asia. The country met expectations, with consumer inflation hitting a 1.5% annual gain. Producer prices rose 5.5% on the year, also hitting expectations.