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Dollar rebounds in Asian trade after plunge last week

Dollar rebounds in Asian trade after plunge last week

The U.S. dollar rebounded slightly in Asian trade yesterday after plunging at the end of last week on news of a jump in the U.S. unemployment rate, dealers said.
The dollar firmed to 105.33 yen in late Tokyo afternoon trade from 104.90 in New York late on Friday.
The euro was unchanged at US$1.5777 but rose to 166.14 yen against 165.55.
"As the stock markets are falling, investors are wavering between selling the greenback and buying it back," said Yuya Koike, a forex dealer at Hachijuni Bank.
Japanese share prices were down nearly two percent in late trade after sharp falls on Wall Street on Friday.
The weaker dollar contributed to a record jump in crude oil prices in New York of more than US$10 a barrel on Friday, adding to concerns about the outlook for the global economy.
The oil price rally and the bleak U.S. jobs report triggered the worst day on U.S. stock markets in 15 months as the Dow Jones index plummeted 3.1 percent Friday.
The U.S. jobless rate jumped to 5.5 percent in May as the world's largest economy lost 49,000 jobs, official figures showed.
Most economists had expected a sharply lower unemployment rate of 5.1 percent. The increase was the largest monthly change since February 1986.
Analysts said the yen could benefit from renewed investor jitters as speculators unwind risky "carry trades" that involve borrowing cheap credit in Japan to invest in higher yielding assets elsewhere.
The yen may rise if stocks decline "as equity markets begin to weigh up (a) worsening trade off between growth and inflation facing central banks," Barclays Capital analysts wrote in a note to clients.
"We think that the foreign exchange and equity markets may be particularly sensitive to upside surprises in inflation data this week," they added.
The dollar was mixed against regional Asian currencies.
The dollar slipped to 1.3635 Singapore dollars from 1.3665 a day earlier and to 44.00 Philippine pesos from 44.18.
It firmed to 1,029.35 South Korean won from 1,023.50, to 9,358.00 Indonesian rupiah from 9,328.00 and to 33.24 Thai baht from 32.96.
The greenback was unchanged at NT$30.34.