The dollar held above 100 yen for a second day, after rallying from the lowest in almost a month, before U.S. employment data that may add to the case for the Federal Reserve to slow stimulus.
Kansas City Fed President Esther George yesterday urged a reduction in the central bank’s bond-buying program, known as quantitative easing, as growth quickens. San Francisco Fed President John Williams said a “modest adjustment downward” in purchases is possible “as early as this summer.” Demand for New Zealand’s kiwi dollar was limited after milk prices fell to a three-month low.
“The dollar weakness only lasted for a day,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “The market will be swayed by comments by Fed speakers about when they may end the QE program ahead of U.S. jobs data.”