The dollar traded quietly in Asian markets on Friday as investors awaited US employment figures that could signal whether the Federal Reserve will raise interest rates again. In Tokyo afternoon trading, the dollar stood at 112.61 yen, while the euro edged up to 1.2817 dollars.
Analysts forecast that the upcoming nonfarm payroll report would show 175,000 jobs added the previous month. A strong reading could push the dollar higher by reinforcing expectations of another rate increase at the June Federal Open Market Committee meeting, while a weak figure might weigh on the currency, though its yield advantage over the yen would limit any decline.
Fed minutes released Wednesday from the 10 May FOMC meeting, at which members voted to lift the federal funds rate a quarter point to 5.0 percent, had already revived rate-hike expectations after 16 consecutive increases since June 2004. National Australia Bank noted that the dollar's direction remained highly sensitive to incoming economic data.
Tensions over Iran's nuclear program drew some market attention after President George W. Bush threatened to seek UN Security Council action if Tehran refused to halt uranium enrichment. Currency analysts said the geopolitical risk had so far produced little measurable effect on foreign exchange trading.
Historical summary. TurkishPress restated this wire report, first published in June 2006, in its own words.