American focus: the dollar gained the most in three months against the yen as reports showed U.S. companies almost tripled the forecast of jobs added in December and services industries grew at the fastest pace since May 2006.
The euro fell against most of its major counterparts as the Swiss National Bank said it won’t accept bonds from some Irish banks as collateral. The Canadian dollar and Mexican peso were the best performers versus the yen on evidence of a North American economic recovery before the U.S. government’s payrolls figures due later this week.
“If you’ve got an expectation of a big payroll number, then dollar-yen is your bet,” said Greg Anderson, a currency strategist at Citigroup Inc. in New York. “Good payroll numbers on Friday is this morning’s move with an exclamation point.”
The dollar advanced 1.4 percent to 83.21 yen at 12:16 p.m. in New York, from 82.04 yen yesterday. It rose as much as 1.6 percent in the biggest intraday gain since Sept. 15 and touched 83.36 yen, the highest level since Dec. 23. The dollar may appreciate to 85 yen by the end of the week if the payrolls report is strong, according to Anderson. The euro fell 1.1 percent to $1.3168, from $1.3308.
Company employment increased by 297,000 in December after a revised gain of 92,000 in the previous month, ADP Employer Services reported. The median forecast of 33 economists in a Bloomberg News survey was for a gain of 100,000.