FOREX-Dollar rises; euro hurt as debt jitters resurface

* Euro down 0.5 pct vs greenback (EUR=: )

* Dollar buybacks continue after robust U.S. jobs data

* Euro falls as peripheral debt worries resurface

* Yen crosses fall, pressured by euro/yen selling

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

By Tamawa Desai

LONDON, Nov 8 (BestGrowthStock) – The dollar rose on Monday as an
unwinding of dollar short positions that began with solid U.S.
jobs data gathered pace, while renewed concern over euro zone
peripheral debt hurt the euro.

With the U.S. Federal Reserve’s decision to launch more
quantitative easing out of the way, euro zone debt problems
seemed to have reappeared on traders’ radars.

On Friday, the 10-year Irish bond yield spread over
benchmark German debt hit record highs, while the 10-year
Spanish/German spread (ES10YT=TWEB: ) (DE10YT=TWEB: ) rose to its
highest level since mid-July.

“Now that QE by the Fed has become a fact, the market is
paying attention to other factors that were overshadowed ahead
of the Fed meeting,” said Roberto Mialich, currency strategist
at Unicredit in Milan.

“Also, stronger-than-expected U.S. payrolls sparked more
position adjustments and profit-taking on the euro. I see a
consolidation of the euro between $1.38 and $1.40 during the
week,” he said, adding traders may be cautious about chasing the
dollar too high ahead of the Group of 20 summit meeting in Seoul
this weekend, which may address imbalances.

By 0828 GMT, the euro (EUR=: ) dropped 0.5 percent to $1.3953,
after triggering stops as it fell through $1.4010 and $1.3990,
its low of last Wednesday when the Fed said it would increase
its asset purchases.

There was support at the day’s low of $1.3920, the 61.8
percent retracement of its Oct. 20 to Nov. 4 rally to a 10-month
high of $1.4283, and more at $1.3835, the 76.4 percent
retracement. Some said the euro could fall towards $1.3750,
having hit a late October low of $1.3756.

The dollar index (Read more about the global trade. ) (=USD: ), a measure of its performance
against a basket of currencies, rose 0.4 percent to 76.889, as
the greenback gained after U.S. jobs data blew past expectations
on Friday. [ID:nN04265378]
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ PDF on Fed decision: More stories on Fed policy: [FED/AHEAD] Take-a-look on criticism before G20 [nTOE69K01G] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Euro/yen selling out of Tokyo was also said to have helped
send the single currency lower, which in turn weighed on other
currencies against the yen.

The dollar was flat against the yen at 81.20 yen (JPY=: ) and
a full yen above its 15-year low of 80.21 yen plumbed last week.

Japanese finance ministry data on Monday showed Tokyo
stepped into the currency market to sell yen for dollars only
once on Sept. 15. [ID:nTOE6A7001]

“I think dollar/yen will eventually rise given the backdrop
of a broad rebound in the dollar, though I suspect there will be
very heavy offers around 82 yen,” said a trader at a Japanese
brokerage house.

The Australian dollar (AUD=D4: ) fell 0.3 percent to $1.0128,
off a 28-year peak of $1.0183 scaled on Friday. The New Zealand
dollar fell more than 1 percent to a low of $0.7868 (NZD=D4: ).

(Additional reporting by Hideyuki Sano in Tokyo; Editing by
John Stonestreet)

FOREX-Dollar rises; euro hurt as debt jitters resurface