Dollar up versus yen, down against euro ahead of jobs report

WALL STREET: The Dow Jones industrial average lost 4.15 points, or less than 0.1 percent, to 17,863.43 on Thursday. Valeant shares have been plummeting since July, as skeptical investors and analysts have questioned the company’s operations. The grocery store chain reported that its latest quarterly profit fell by more than half as it faces more intense competition now because organic foods are becoming more widely available.

The New Zealand dollar fell ahead of USA labour market figures that may add to the case for the Federal Reserve to raise interest rates from near zero next month. Fed Vice Chairman Stanley Fischer later echoed her sentiment, saying core inflation won’t be far from the 2% target once the rising dollar and falling oil prices stabilize. Yellen did stress that no decision has been made yet and a move in December will depend on how the economy fares between now and then.

U.S. nonfarm payrolls, which are closely watched by the Fed, are expected to show the world’s biggest economy added 180,000 jobs last month, while the unemployment rate held at 5.1 percent. Southwestern Energy rose 62 cents, or 5.3 per cent, to $12.28 and CONSOL Energy rose 33 cents, or 4 per cent to $8.45.

Ahead of the labour market data, traders will be watching for speeches by Federal Reserve Bank of New York president William Dudley, Fed vice chairman Stanley Fischer and Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, Ive said.

“We’ve got two more payrolls before the Fed meets in December so it’s reasonably important”, said Imre Speizer, senior market strategist at Westpac Banking Corp in Auckland. Brent crude, which is used to price global oils, fell 60 cents, or 1.2 per cent, to $47.98 a barrel. The contract slumped $1.58, or 3.3 percent, to close at $46.32 a barrel on Wednesday as Yellen’s comments pushed up the dollar.

But the greenback slipped against the euro, going to US$1.0881 (RM4.679) per euro from US$1.0865.

The dollar inched towards 2-1/2 month highs against a basket of currencies on Wednesday, buoyed by returning expectations of a rise in U.S. rates and better growth globally, which has prodded yields on USA government bonds higher this week.