TOKYO/SINGAPORE- The dollar was on the defensive against more growth-sensitive currencies, following upbeat US and European economic data, though worries about the coronavirus blunted more aggressive risk taking ahead of upcoming US jobs figures.
The New Zealand dollar led modest gains in Asia, edging ahead by 0.2 percent to a one-week high of $0.6492.
Against a basket of currencies, the greenback slipped marginally and is tracking toward its worst week in a month, with a 0.4 percent fall – though it could shift significantly in either direction depending on US jobs data.
Non-farm payrolls figures are expected to show an increase of 3 million jobs last month.
But estimates vary widely and the data comes as concerns grow about whether the US economy can sustain its recovery as coronavirus infections surge and some states reimpose limits on business and personal activity.
“Any reasonable reaction to this number must also price in the resurgence in cases,” said Vishnu Varathan, head of economics at Mizuho Bank in Singapore, adding that a strong beat is needed to boost sentiment.
“A shortfall, particularly even one that may be mildly negative, would quickly reinforce the shadows of doubt being cast on plans for unfettered re-openings,” he said. — Reuters
