Dollar regains little ground against euro after USA jobs data

After moving around ¥122.70 in early Tokyo trading, the dollar dropped below ¥122.50 at one point as Tokyo stocks plummeted on selling by investors who were disappointed at the ECB’s decision not to increase the monthly pace of its asset purchases, contrary to expectations among some market players, market sources said.

Following volatile trade around the decision, the FTSEurofirst 300 was last down 0.5 percent at 1,505.90, over one percent down from session highs hit shortly before the announcement.

While traders, investors and analysts are blaming European Central Bank’s (ECB) communications over its intention, after the bank fell well short of market expectations, resulting in seventh biggest Euro move since its creation (3%), ECB vice-president Victor Constancio blamed market expectations. The ECB cut its deposit rate by 10 basis points and this lowered the rate to minus 0.30%.

Draghi seemed to want to ease investor concerns Friday, repeating both in his speech an in response to questions from a panel that the European Central Bank can expand its bond-buying program, known as quantitative easing, or cut interest rates even further, if necessary.

The euro was mostly unchanged against the dollar at $1.0870, after surging on Thursday.

The bellwether Philippine Stock Exchange index (PSEi) lost 72.17 points or 1.03% to close at 6,921.93.

The euro jumped 3.1 percent on Thursday, posting its biggest single-day gain since March 2009.

The euro’s gains were also given support after Federal Reserve boss Janet Yellen said the bank remained wary of a United States interest rate rise because of concerns about a strong dollar and other central banks’ loose monetary policies.

That would be a fairly low bar given that economists’ median forecast was 200,000, when even the most conservative forecast in a Reuters poll of more than 100 economists was 150,000. She also was careful to point out the need to review new data, including today’s U.S.jobs report.

ASIA’S DAY: Regional benchmarks ended sharply lower, with Japan’s Nikkei 225 dropping 2.2 percent to close at 19,504.58.

While the Fed is still widely expected to lift rates this month – for the first time in nine years – Yellen’s comments caused traders to baulk after a recent run-up in the dollar.

Crude oil prices extended Thursday’s 3 per cent rise as OPEC leaders gathered in Vienna.

Brent crude futures climbed to $43.97 per barrel, having bounced back from Wednesday’s three-month low of $42.43, while U.S. light crude rose two thirds of one percent to $41.38 a barrel. It last stood at 98.041.