The dollar remained lower against the yen after a report showed employment growth was more than forecast last month while the jobless rate unexpectedly increased, spurring speculation the Federal Reserve will maintain its stimulus programs that risk devaluing the currency.
The dollar gained the most in almost two months against the euro amid bets the Federal Reserve will slow its asset purchases under the quantitative-easing stimulus strategy on signs the world’s biggest economy is accelerating.
The dollar had its biggest rally since February as signs of labor market strength suggested the Federal Reserve may reduce stimulus sooner than its peers, driving the yen lower than 100 for the first time since 2009.
The dollar fell after touching its strongest level versus the euro since December as European leaders debate loosening the shackles on national budgets to address economic weakness amid the region’s debt crisis.
A benchmark gauge of U.S. corporate debt risk fell after durable goods orders and pending home sales in May increased more than forecast, building on earlier gains tied to bets that China will pursue growth-boosting measures.
The yen fell for a sixth week against the dollar, the longest streak in nine months, after the nation’s central bank said it would review its inflation target after a pro-stimulus government was elected.