Dollar rises against euro

TOKYO (AFP) - The dollar rose against the euro in Asia on Monday, supported by a surprise improvement in US jobs data and renewed worries about European sovereign debt, dealers said. The euro fell to 1.3961 dollars in Tokyo afternoon trade from 1.4032 dollars in New York late Friday, and to 113.36 yen from 114.02 yen, as attention moved to sovereign debt issues among some eurozone economies. The dollar was range-bound against the yen, trading at 81.21 yen, hardly changed from New York, where the dollar rose after better-than-expected jobs data boosted confidence in the US economy. Worries over Europe returned due to problems such as opposition in Ireland to public pension cuts and uncertainty ahead of the official outcome of local elections in Greece Sunday, in which the ruling Socialists took an early lead. Greece narrowly avoided default in April when a scare over the recently exposed size of its deficit drove its borrowing costs to prohibitive levels, putting pressure on the euro. It was rescued with a massive 110-billion-euro loan from the European Union and the International Monetary Fund. With the Ireland pension issue and the Greek election we have some new elements of uncertainty in the eurozone, said a foreign exchange options dealer at a major Japanese bank. Some investors who had previously gone long on the euro have taken these issues as cues to trim those bets, the dealer told Dow Jones Newswires. The dollar got support from US jobs data released Friday, which showed 151,000 new jobs were created in October, much better than expected. But selling of the greenback by Japanese exporters who wanted to lock in repatriated profits capped the dollars rise, leaving dollar-yen rates stuck in a tight range, said Mizuho Corporate Bank market economist Daisuke Karakama. Investors were also cautious ahead of Group of 20 summit talks in South Korea later this week. Karakama said it was becoming more difficult for countries to step into markets amid tension over possible competitive devaluation of currencies and calls for correcting current account imbalances. It is questionable whether other countries will tolerate a country with a surplus (in its current account) pushing its currency lower, he said. The dollar rose to 43.01 Philippine pesos from 42.73 on Friday and to 1.2856 Singapore dollars from 1.2830. The greenback also firmed to 1,113.20 South Korean won from 1,107.00, to 30.15 Taiwan dollars from 30.08, and to 8,905.00 Indonesian rupiah from 8,895.00 while holding firm at 29.61 Thai baht.

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