Dollar firms after strong US jobs data, pushes yen through 160 level

By Hannah Lang and Amanda Cooper

NEW YORK/LONDON, June 5 (Reuters) - The dollar was higher connected Friday aft the U.S. system posted different period of beardown employment gains successful May.

Nonfarm payrolls accrued by 172,000 jobs past month, the Labor Department's Bureau of Labor ‌Statistics said successful its intimately watched employment study connected Friday. Economists polled by Reuters had forecast payrolls expanding by 85,000 jobs aft ‌a antecedently reported 115,000 emergence successful April.

The fig sent the dollar up sharply against the yen, which has been investigating the 160-per-dollar obstruction this week, drafting crisp warnings from Japanese officials ​as Middle East tensions person underpinned safe-haven demand.

The yen was past down 0.05% against the dollar astatine 160.115. It was headed for a 4th consecutive play nonaccomplishment against the dollar, having unwound gains from authoritative buying successful precocious April and aboriginal May.

The 160-per-dollar people has antecedently triggered involution and its proximity prompted different informing from Finance Minister Satsuki Katayama, who said Japan was acceptable to respond astatine immoderate clip and reserved the close to instrumentality "decisive action" against excessive volatility.

The Bank ‌of Japan is wide expected to rise involvement rates ⁠this month, arsenic higher vigor import costs adhd to terms pressures. Money markets besides constituent to a 2nd hike by year-end.

Investors wide expect the Fed to permission rates unchanged erstwhile it meets this month, according to CME's FedWatch tool.

"The barroom ⁠to a Fed alteration is precise high, and I don't deliberation this cuts it," said Marc Chandler, main marketplace strategist astatine Bannockburn Global Forex. "I inactive deliberation there's a bully accidental of a hike earlier the extremity of the year, but we'll person to see."

The euro fell aft the merchandise of U.S. jobs data, and was ​last ​down 0.29% astatine $1.1575, contempt expectations of up to 3 European Central Bank complaint hikes ​this year. The lb fell 0.12% to $1.34.

"From a euro perspective, ‌the perpetuation of elevated vigor prices remains a resistance connected enactment there," CIBC Capital Markets caput of G10 FX, Jeremy Stretch, said.

GULF HOSTILITIES SUPPORT DOLLAR DEMAND

Peace talks betwixt the U.S. and Iran are astatine a stalemate, and a reignition of hostilities this week has kept lipid supra $90 a barrel, raising risks to planetary growth.

On Friday, Iran reaffirmed enactment for its Lebanese state Hezbollah and demanded Israel retreat from confederate Lebanon, underscoring complications facing an interim woody to extremity the broader struggle betwixt the U.S. and Iran.