TOKYO: The dollar edged higher against the yen in Asia on Monday after rallying at the end of last week on strong US jobs data. The greenback was at 121.59 yen in midday Tokyo trade, compared with 121.44 yen in New York and around 120.00 yen in Tokyo earlier Friday.
The euro bought $1.2290 and 149.45 yen against $1.2283 and 149.16 yen in US trade Friday. Traders bid up the dollar Friday after the Labor Department said the US economy created 321,000 jobs in November, its best monthly jobs performance for nearly three years.
The strong data fuels speculation that the US Federal Reserve will start raising its key interest rate sooner than expected, bolstering the greenback. The dollar has rallied to its highest level against the yen since July 2007 in recent weeks, boosted by confidence in the US economy and the Bank of Japan's surprise decision in October to ramp up its vast stimulus programme. National Australia Bank said in a report that the jobs report was "a rather golden report for (dollar) bulls and enough to make US recovery pessimists" think again.
There was little reaction to news that Japan's economy had contracted more than expected in July-September, confirming it was in recession.
