The dollar slipped to a two-month low against the yen Monday after the US economy posted its sharpest monthly loss of payroll jobs in more than nine years.
The weak data, which indicated slowing US growth and no change in Federal Reserve interest rates, also helped the euro continue a recovery against the dollar from its new record lows of last week.
The dollar bought 105.76-78 yen at 2:00 p.m. (0500 GMT), down from 105.91 yen in New York and 106.64 yen in Tokyo late Friday.
The greenback briefly hit 105.65 yen earlier, its lowest since July 4.
"US employment statistics released at the end of last week are still triggering dollar-selling," Asahi Bank dealer Shigeru Nakane said.
The US Labor Department said non-farm payrolls shrank by a net 105,000 jobs in August, when the unemployment rate inched up to 4.1 percent from four percent in July.
The yen was also bought "because investors expect Japan's gross domestic product (GDP) data due out next week as well as corporate results to be positive," Nakane said.
"There is a trend of yen-buying."
Japan's government said Monday it would announce its April-June GDP figures on September 11.
The euro traded at $0.9013 around 2:00 p.m., up from $0.9003 in New York and $0.8884 in Tokyo late Friday.
But the common European currency's rally could be short-lived, DBS Bank said in Singapore.
"The current sentiment is extremely bearish against the euro," it said in a report. "The market will continue to look for reasons to sell the euro."
Against the yen, the euro was quoted at 95.35, up from 94.74 in Tokyo Friday. — (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)
