The dollar remained on the defensive versus the loonie and aussie but held its ground versus other major currencies Friday morning in New York as traders looked ahead to the release of the pivotal monthly jobs report.
Resource-linked currencies like the loonie and aussie have been strengthened of late as commodities prices rebounded on hopes of a global economic recovery.
The dollar dropped to a fresh 6-month low of 1.1600 against its Canadian counterpart as the price oil held above $57 a barrel Friday morning. At the same time, the dollar hit a new 7-month low of .7575 versus the aussie.
Canadian employment grew by 36,000 in April, the result of an increase in self-employment, according to data released Friday morning by Stats Canada.
The dollar crept closer to the elusive century mark versus the yen Friday morning, holding near 99.50. With the modest advance, the dollar inched toward April's multi-month high of 101.43.
The Bank of Japan board members predicted that the Japanese economy is likely to continue to deteriorate through the end of 2009, minutes from the April 6 and 7 monetary policy meeting revealed on Friday.
The dollar held steady versus the euro Friday morning, staying near 1.3400 after hitting a monthly low of 1.3469 on Thursday. While the dollar has been trending lower of late versus the euro, its losses have been less pronounced than versus other majors, with traders uncertain about the European Central Bank's approach to battling the recession.
European Central Bank President Jean-Claude Trichet said Thursday the central bank plans to buy euro-denominated covered bonds, joining the Federal Reserve and other central banks in buying debt under their quantitative easing policies.
The dollar also moved no lower versus the sterling after hitting a 4-month low of 1.5196 earlier in the week. The dollar held near 1.5050 Friday morning, with all eyes on the US government's monthly jobs report, set for release at 8:30 am ET.
The employment report is expected to show a decrease of about 600,000 jobs.
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