Yen falls as U.S. jobs gain dims refuge bid

The yen fell versus the dollar, trading at almost the weakest since May 2010, as a private report showed U.S. companies added more workers than forecast in February, damping demand for haven assets.

The euro declined against the greenback for the first time in three days as euro-area exports fell in the fourth quarter for the first time in three years. The Canadian dollar weakened after the Bank of Canada indicated it won’t raise interest rates anytime soon. Policy meetings for the euro area and Japan are scheduled to conclude tomorrow.

The ADP Research Institute’s jobs report “is definitely having a positive effect on dollar-yen,” Dan Dorrow, the head of research at Faros Trading LLC in Stamford, Connecticut, said in a telephone interview. “Within the G-4, this consistently decent U.S. data is supporting the dollar against the pound, euro and yen.”

Japan’s currency depreciated 0.7% to 93.92 per dollar at 1:37 p.m. in New York. The yen rose 0.2% the euro to 121.98. The 17-nation currency slipped 0.5% to $1.2987.

The yen has tested 93.72 ahead of a key support range from 94.78 to 95, Cilline Bain, a London-based technical analyst at Credit Suisse Group AG, wrote today in a note to clients.

The Japanese currency may decline to 99.86, which would be its lowest level since April 2009, if it breaks that support, he said. Support refers to an area on a chart where buy orders may be clustered.

Zloty, Won

The Polish zloty weakened the most in six weeks after the central bank cut its benchmark interest rate by 0.5 percentage point, defying expectations of a 0.25 reduction in borrowing costs. The currency declined 1 percent to 3.1913 per dollar after falling to 3.1955, its lowest level since Feb. 26.

South Korea’s won advanced for a second day versus the dollar after a surge in U.S. equity markets prompted global funds to buy South Korean stocks. It gained 0.4% to 1,082,60 per dollar after reaching 1,082.19, its highest level since Feb. 28. The Dow Jones Industrial Average closed at a record 14,253.77 yesterday.

The loonie, as the Canadian dollar is known for the image of the water fowl on the C$1 coin, weakened 0.5% to C$1.0318 per U.S. dollar, after falling as much as 0.7%.

The Swiss franc fell against most of its most-traded peers amid the flight to safer assets. The currency decreased 0.8%  to 94.79 centimes per dollar after falling to its weakest since Nov. 19.

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