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US dollar edges up from two-year low versus euro

The dollar edged up from a two-year low against the euro in Asian trading on Friday as players took to the sidelines ahead of keenly awaited US jobs data, dealers said.

The euro slipped to US$1.3417 in afternoon trading in Tokyo from US$1.3427 in New York late on Thursday, when it had hit US$1.3441, the highest level since March 2005.

The euro inched up to ¥159.44 from ¥159.42, while the US dollar rose to ¥118.85 from ¥118.71.

Dealers said trading was quiet with US, European and many Asian financial markets closed on Friday, even though Washington released its nonfarm payrolls report, seen as a critical economic indicator on the world's largest economy.

"It is difficult to take positions ahead of the release of the US payrolls data, which is now a key factor ... for financial markets," said Kosuke Hanao, dealer of forex sales at HSBC.

"Some predict stronger figures but we really need to see what they are," Hanao said.

An acceleration in US employment growth last month produced 180,000 new jobs, the US government said on Friday in a sign that the economy is more robust than some had anticipated.

The increase in nonfarm payrolls, seen as one of the best indicators of economic momentum, was much stronger that the gain of 135,000 expected on Wall Street.

The US Labor Department said the unemployment rate, calculated on a separate survey of households, fell to 4.4 percent from 4.5 percent a month earlier. The last time the rate was lower was in May 2001.

Investors are paying close attention to the jobs data following a slew of weak US figures which have fanned jitters over the pace of the US economic slowdown, dealers said.

The US currency lost ground against the New Taiwan dollar in Taipei on Wednesday, falling NT$0.035 to close at NT$33.081.

A total of US$762 million changed hands during the day's trading.

The US dollar opened at NT$33.112 and fluctuated between NT$33.060 and NT$33.144.

The dollar slipped to S$1.5128 from S$1.5144 on Thursday, to 931.05 South Korean won from 936.30, to 32.35 Thai baht from 32.45 and to 9,098 Indonesian rupiah from 9,126. It firmed to 48.025 Philippine pesos from 47.950.

The pound fell against rival currencies after the Bank of England held its key interest rate at 5.25 percent for the third month in a row on Thursday.

Official figures showed manufacturing output, which accounts for about 15 percent of the British economy, fell by 0.6 percent in February from the previous month, confounding analysts' expectations for a 0.3 percent rise.

In late New York trading, the British pound was being traded at US$1.9707 after US$1.9759 on Wednesday.

The US dollar stood at 1.2150 Swiss francs from SF1.2197.
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