Dollar hovers in lower 124 yen range in Tokyo

10/08/2015 10:50 AST

The U.S. dollar hovered on a firm note in the lower 124 yen range Monday morning in Tokyo, but its upside was capped after U.S. jobs data released Friday came in largely within market expectations.

At noon, the dollar fetched 124.34-35 yen compared with 124.15-25 yen in New York and 124.78-80 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.0962-0963 and 136.30-33 yen against $1.0960-0970 and 136.14-24 yen in New York and $1.0939-0941 and 136.50-54 yen in Tokyo late Friday afternoon.

The U.S. currency briefly hit 125.07 yen, its highest level in two months, in New York on Friday immediately after the release of the July jobs data, although it later came under selling amid falls in U.S. long-term rates.

The dollar's upside was limited as the jobs report was not strong enough to accelerate expectations that the U.S. rate hike by the U.S. Federal Reserve would be coming in September," said Shinichiro Kadota, foreign exchange strategist at Barclays Bank.

At the same time, however, the report was not weak enough to reject the rate hike in September, Kadota added, noting that nonfarm jobs increased above the 200,000 threshold indicative of economic recovery for the third consecutive month.

The report also revised upward the figures for nonfarm jobs generated in June and in May.

"The market will continue to pay close attention for clues on the timing of the rate hike such as Fed members' comments or economic indicators," Kadota said.

The euro, meanwhile, edged up against the yen in tandem with the dollar-yen pair while moving narrowly against the dollar.

NIKKEI