FOREX-Dollar at 3-mth high vs yen; US jobs data awaited

* Dollar hits 3-mth high vs yen; recovers a little vs euro

* Japanese investors seen looking for returns abroad in Q2

* Kiwi falls after IMF says it is overvalued

(Adds quotes, updates prices, changes dateline, prvs TOKYO)

By Jessica Mortimer

LONDON, April 1 (BestGrowthStock) – The dollar hit a three-month
high against the yen on Thursday on talk Japanese investors will
look for higher returns abroad as the new fiscal year begins.

Many expect a pick-up in Japanese investor demand for
foreign currencies, higher risk appetite, expectations U.S.
Treasury yields will rise, and widening rate differentials over
Japanese government bonds will weigh further on the yen.

The dollar also recovered from a one-week low versus the
euro as investors awaited U.S. jobs data on Friday which is
expected to show a rise in non-farm payrolls. (ECONUS: )

The euro was helped on Wednesday by data showing an
unexpected fall in U.S. ADP private payrolls, suggesting
Friday’s data could come in below forecasts for the U.S. to have
added 190,000 jobs in March. [ID:nN31218176]

“The disappointing ADP data helped euro/dollar as
expectations for non-farm payrolls have come down a bit, but
they are still forecast to show a rise and the Greek story
continues to weigh on the euro,” said Youna Park, strategist at
Commerzbank in Frankfurt.

An ISM survey on U.S. manufacturing activity at 1400 GMT on
Thursday is also expected to show an improvement in March.

At 0754 GMT, the euro (EUR=: ) was down 0.1 percent at
$1.3496, off an earlier one-week high of $1.3561, according to
Reuters data. The dollar index (Read more about the global trade. ) (.DXY: ) was steady at 81.065.

Greek government bonds came under pressure on Wednesday
after Moody’s cut the credit ratings of five Greek banks.

Pimco, the world’s largest bond fund, said on Thursday it
considered Europe’s actions on Greece were ineffective in fixing
the heavily-indebted country’s problems. [ID:nTPU002301]


The dollar hit a three-month high of 93.73 yen (JPY=: ),
Reuters data showed, with traders saying sentiment towards the
yen is turning bearish heading into the new quarter.

Traders see the next major resistance around its early
January high of 93.78 yen and say a daily close above 93.80 yen
would be bullish for the dollar and could take it past 95.00 yen
in the near term.

“There is a risk that dollar/yen will reverse its recent
gains, but the price action suggests the dollar’s downside looks
very limited,” said Masafumi Yamamoto, chief FX strategist at
Barclays Capital in Japan.

The Bank of Japan’s tankan survey showed Japanese business
sentiment improved in March to its highest level since September
2008, but the yen took the report in stride as it nearly matched
expectations. [ID:nTOE61E037]
Insider Tankan comment

“It looks like rising risk appetite is still negative for
the yen,” Commerzbank’s Park said.

The New Zealand dollar fell, trading down 0.6 percent at
$0.7060 (NZD=D4: ) after the International Monetary Fund said the
currency was overvalued by 10-25 percent. [ID:nN31245977]

Sterling gained, hitting a five-week high against the euro
of 88.55 pence (EURGBP=D4: ), with traders citing an opinion poll
showing the opposition Conservatives could gain a majority in
the upcoming election, diminishing UK political uncertainty.

The Swiss franc hit 1.4187 francs per euro (EURCHF=R: ), its
firmest since the euro was launched in 1999 after a strong
reading of the Swiss purchasing managers’ index. [ID:nZAT010793]

Investing Basics

(Additional reporting by Satomi Noguchi in Tokyo)

FOREX-Dollar at 3-mth high vs yen; US jobs data awaited