* Dollar dips vs yen on profit-taking before US data
* Japanese exporters' dollar offers seen above 88.50 yen
* Creditors to refuse Dubai World deal - report
By Rika Otsuka
TOKYO, Dec 4 (Reuters) - The dollar dipped against the yen on
Friday as traders took profits on the greenback's sharp rebound
from a recent 14-year trough ahead of the U.S. government's
monthly employment report later in the day.
Higher-yielding currencies took a breather after a brisk rise
against the yen in the last three days as investors became
nervous about further purchases of riskier assets.
The yen has fallen broadly this week, reversing a surge the
previous week, as the Bank of Japan took steps to attack
deflationary pressures.
Market participants were increasingly nervous ahead of U.S.
labour data after White House spokesman Robert Gibbs said on
Thursday that a recent private sector payroll report had
signalled that the November unemployment level may tick up from
October's 10.2 percent. []
Gibbs stressed his comments were not predicting the outcome
of Friday's data but some players trimmed long positions in
cross/yen.
"Market sentiment is now turning a little bit sour after
having moved on expectations of brighter results on U.S. jobs
after the improving initial claims and employment components of
ISM data earlier this week," said a currency analyst at a
European bank.
"How the results will impact the market is hard to predict.
But dollar/yen is likely to move with the direction of long-term
U.S. yields after the data," said the analyst, adding that
falling yields could drag dollar/yen lower.
Analysts said a report in the UK's Guardian newspaper that
creditors of Dubai World are expected to reject a standstill
agreement proposed by the company, threatening to drag out
negotiations over $26 billion worth of the conglomerate's debt,
also hurt the market mood.
The dollar fell 0.1 percent from late U.S. trade to 88.20 yen
<JPY=>, having recovered from a 14-year low of 84.82 yen hit last
week on trading platform EBS.
Traders said Japanese exporters' dollar offers were lined up
above 88.50 yen, keeping players hesitant about chasing the
dollar higher.
Economists polled by Reuters gave a median estimate of
130,000 jobs lost in November, down from 190,000 in October,
while November unemployment rate is forecasted to be unchanged at
10.2 percent. []
BOJ SPECULATION
Market participants still believe the dollar is on a long
downward trend against the yen, though it might have hit a
near-term bottom versus the yen.
The central bank will launch a new money market operation to
supply around 10 trillion yen ($113 billion) in three-month funds
but speculation has persisted that it could pump even more
liquidity into the market.
"The yen has weakened against major currencies mainly on
speculation the BOJ could flood the market with funds again,
allowing people to embark on yen carry trades again," said a
senior forex trader at a Japanese trust bank.
"But if something happens to shake investor confidence, that
sort of speculation could easily fade away."
The euro edged up 0.1 percent against the greenback to
$1.5070 <EUR=> after trading mostly flat on the day. It rose 0.2
percent versus the yen to 133.10 yen <EURJPY=R>, recovering from
earlier losses to 132.50 yen.
The euro had climbed sharply versus the Japanese currency the
previous day, when the European Central Bank suggested it would
gradually withdraw emergency liquidity from the system.
[]
The European single currency on Thursday neared a 16-month
high against the dollar around $1.5140 after ECB President
Jean-Claude Trichet said the next 12-month refinancing operation
for banks would be the last.
But the euro soon lost steam as Trichet said liquidity moves
should not be seen as any kind of a signal on interest rates. The
ECB left rates at a record low 1.0 percent at Thursday's meeting.
[]
The higher-yielding Australian dollar also rebounded from
earlier lows to trade flat on the day at 81.57 yen <AUDJPY=R>.
(Additional reporting by Satomi Noguchi; Editing by Hugh Lawson)
((rika.otsuka@thomsonreuters.com; +81-3-6441-1874; Reuters
Messaging: rika.otsuka.reuters.com@reuters.net))
((If you have a query or comment on this story, send an email to
news.feedback.asia@thomsonreuters.com))
