Data:
09:00 E16 Unemployment (May) 9.5%
09:00 Е16 PPI (May) -0.2%
09:00 Е16 PPI (May) Y/Y -5.8%
The yen and the dollar strengthened
as stocks around the world declined before a report likely to show the
U.S. unemployment rate rose to a 26-year high, spurring demand for the
currencies as a refuge.
The dollar was also buoyed after a
Chinese Foreign Ministry official said he was “not aware” of a plan to
discuss a new reserve currency at next week’s Group of Eight meeting.
U.S.
employers cut 365,000 jobs last month after reducing them by 345,000 in
May, according to a survey of economists before the Labor Department
report. The unemployment rate climbed to 9.6 percent, a separate survey
showed.
The Dollar Index, which tracks the currency against those
of six major U.S. trading partners including the euro, yen and pound,
advanced 0.4 percent to 79.946.
The dollar fell yesterday
after Reuters reported that China had asked to debate proposals for a
new global reserve currency at the G-8 summit in Italy. China’s central
bank renewed its call for a new global currency in its 2008 review
released last week, prompting speculation that the country will
diversify its currency reserves.
The yen strengthened
versus 12 of the 16 major currencies as stocks declined before the U.S.
employment report. Europe’s Dow Jones Stoxx 600 Index fell 1.3 percent.
Standard & Poor’s 500 Index futures lost 0.5 percent.
EUR/USD the pair continued to sustain losses therefore the low in the field of $1,4040 reached