* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
By Hideyuki Sano
TOKYO, May 7 (Reuters) - The dollar stayed under modest
pressure on Friday ahead of a key U.S. jobs report that could
cement expectations of a strong economic recovery and fan
investor appetite for stocks, higher-yielding currencies and
commodities.
The dollar's index against six other major currencies stood
near its lowest level so far this week, at 90.868 =USD , having
lost about 0.4% overnight.
As the dollar is softer against most currencies, the euro
outshone many others, having gained 0.5% on Thursday to trade at
$1.2063 EUR= .
Against the yen, the dollar dipped to 109.05 yen JPY= ,
almost flat so far on the week as its rebound since late April
has lost steam.
U.S. payrolls data due at 1230 GMT will likely confirm the
economy's solid path to recovery from the pandemic, analysts
said. Economists expect 978,000 new U.S. jobs for April,
according to a Reuters poll.
Ahead of the closely-watched report, data showed on Thursday
the number of Americans filing new claims for unemployment
benefits fell below 500,000 last week for the first since the
COVID-19 pandemic started more than a year ago. Although signs of a strong job recovery could stoke
inflation worries, so far most Federal Reserve policymakers have
downplayed the risks of higher prices, a sign stimulus tapering
will not be on agenda any time soon.
"Markets are convinced that the Fed won't make actions until
the U.S. will see a full employment. That means positive
environment for risk assets such as stocks," said Bart
Wakabayashi, Tokyo Branch Manager of State Street.
"I often hear people say they are fine with the idea of
selling the dollar. The question is becoming, what you should
buy against the dollar?"
The Canadian dollar rose almost 1% overnight to a 3-1/2-year
high of C$1.21455 CAD=D4 and last stood at C$1.2157.
The currency has been bolstered by oil price gains and the
Bank of Canada's recent shift to more hawkish guidance.
The Chinese yuan also held firm near a two-month high,
standing at 6.4655 per dollar in offshore trade CNH= , just
short of its April 30 peak of 6.4613.
The British pound traded at $1.3896 GBP=D4 , unable to hold
on to gains made on Thursday after the Bank of England slowed
the pace of its trillion dollar bond-purchasing programme.
The decision was largely expected and the BoE stressed it
was not reversing its stimulus. The British currency could be capped for now by
uncertainties over Scottish election that could trigger a
showdown with British Prime Minister Boris Johnson over its
independence movement. Although the polls already closed at 2100 GMT, votes will
not be counted until Friday morning due to the coronavirus
pandemic.
Just over a third of the results will be announced on Friday
and the remainder will be announced on Saturday.
Elsewhere, ether hit a fresh record high of $3,610.04
ETH=BTSP and last traded at $3,473.51.
Bitcoin fetched $56,541 BTC=BTSP , trapped in a range
between $53,000 and $59,000 over the past week.
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