US dollar rises against yen as markets eye Iran deal, jobs report

By Chibuike Oguh and Samuel Indyk

NEW YORK/LONDON, Aug 6 (Reuters) - The U.S. dollar roseate against the Japanese yen connected Thursday, helped by safe-haven positioning from investors awaiting details connected a projected woody to extremity the Iran struggle and up of the monthly ‌U.S. jobs report.

The dollar has been clawing backmost immoderate caller intervention-driven losses that had pushed it to a 13-week debased against the yen ‌following associated enactment by Japanese and U.S. Treasury authorities to prop up the currency.

The dollar was past up 0.41% against the yen astatine 158.41, connected way for its 3rd consecutive league ​of gains aft weakening to arsenic debased arsenic 155.20 connected Monday, its lowest level since aboriginal May.

"When you fortify the yen, you by explanation weaken the dollar and that's portion of what happened successful the archetypal portion of the week since Friday," said John Velis, FX and macro strategist astatine BNY.

"But the thought that possibly there's immoderate bully quality connected a ceasefire oregon a woody successful the Persian Gulf has taken immoderate of the dollar premium disconnected with little lipid prices ‌and truthful forth. It's precise quiescent contiguous due to the fact that I ⁠think the markets are waiting for what happens with non-farm payrolls connected Friday."

The euro was down astir 0.29% astatine $1.1519 and sterling fell 0.12% astatine $1.3454.

EYES ON THE GULF

Markets remained watchful arsenic tensions continued to play retired successful the Gulf, aft ⁠Reuters reported a projected woody betwixt Iran and Oman to assistance extremity the U.S.-Iran struggle could springiness Tehran power implicit inbound postulation done the Strait of Hormuz.

However, determination was nary contiguous U.S. remark connected the proposal. President Donald Trump has said that a woody to reopen the strait was imminent, but U.S. officials person repeatedly insisted ​that ​they would ne'er hold to Iranian power of entree to the world's astir important ​trade way for vigor supplies.

Brent crude was up 3.42% to ‌around $82 a barrel, though prices stay good beneath the astir $100 per tube deed successful July erstwhile tensions betwixt Iran and the U.S. flared.

PAYROLLS DATA IN FOCUS

Investors are turning their attraction to the merchandise connected Friday of the U.S. employment study for July, which could supply much clues connected the Federal Reserve's involvement complaint path. Data showed the country's services assemblage stayed beardown successful July portion services-sector employment slowed.

A divided U.S. cardinal slope near rates unchanged past period but Fed Chairman Kevin Warsh delivered an unwavering committedness to bring ostentation down, leaving the doorway unfastened to a imaginable complaint hike successful September.

"Any information ‌release aft the Fed gathering successful July is conscionable precise important," said Francesco Pesole, an ​FX strategist astatine ING. "Tomorrow's payrolls could beryllium beauteous large for dollar-yen. If it's a blistery ​print past you would astir apt commencement to spot a caller physique ​up of speculative longs connected dollar-yen."