Dollar remains strong against major rivals early Asia, after past Friday U.S. news showing nonfarm payrolls declined 247,000 in July, the smallest drop since past August and far below expectations. Unemployment rate also fell to 9.4% from 9.5% sending Wall Street to hit fresh 9 months highs. Greenback quickly change the inverse correlation with stocks and regained the upside against major rivals, thus Japanese Yen was the biggest loser of the day, after reaching Y97.50 against dollar, and briefly breached 163.00 against GBP.
Regarding Japanese yen, the currency is expected to continue losing ground against major rivals, after some short term
correction. Nikkei 225 as well as local share markets have a positive cue from past American session, and will likely to continue supporting dollar as market players are turning away from risk-appetite-related flows and refocusing on interest rate differentials as expectations of tightening of Fed policy grow.
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