The world's reserve currency was driving toward a third consecutive week of gains against the Japanese yen on Friday, driven by a healthy October employment report issued by the U.S. Labor Department, Bloomberg reports.
Drawbacks to the monetary unit of the Pacific Rim nation primarily were economic uncertainty and tepid corporate earnings, both of which influenced speculation about the Bank of Japan's inclination to implement additional monetary easing. When the central bank of Japan did so less than two weeks ago, many analysts and investors were disappointed by how small the effort was.
"If we get very good data out of the U.S. we might actually see people going to the U.S. dollar because, on a relative basis, the U.S. is much better" as compared to the 17-nation euro zone, treasury economist Lee Sue Ann with United Overseas Bank Ltd. in Singapore told the news source. "If we get very bad data and things are not so good, usually the dollar is also supported because it’s a safe-haven currency."
The dollar's gains against the Japanese yen this week are approximately 0.8 percent.
The world's reserve currency also solidified against the rupee of India, according to The Times of India.
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