USD/JPY hits 103 as Dudley Backs Taper Before Jobs

The dollar was set for its biggest weekly gain in four months versus the yen before the release of U.S. payrolls data, with a Federal Reserve official reiterating the threshold for changing its stimulus tapering is high.

The U.S. currency yesterday touched its strongest versus the yen since January as reports showed fewer Americans filed claims for jobless benefits. New York Fed President William Dudley said that while harsh weather will hurt growth during the first quarter, it won’t harm the economy enough to merit slowing the reduction of bond purchases. Australia’s dollar held near its highest in almost three months as central bank Governor Glenn Stevens spoke before a parliamentary panel today.

“There’s a bit more optimism about payrolls after the drop in jobless claims,” said Yuki Sakasai, a currency strategist in New York at Barclays Plc. “Whether dollar-yen continues this week’s climb will depend on the extent of the surprise in the data. With the weather providing an excuse for a bad result, markets are more likely to react to a positive number.”


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