* Dollar boosted by upbeat US private sector jobs report
* Non-farm payrolls awaited for potential extra lift
* Aussie posts modest bounce, still near 4-week low
By Shinichi Saoshiro
TOKYO, June 2 The dollar hit a one-week high
against the yen early on Friday, on the front foot after upbeat
U.S. private sector job figures and awaiting the closely-watched
non-farm payrolls report for another potential boost.
The U.S. currency was up 0.2 percent at 111.560 yen
after rising to 111.580, its highest since May 26. It was on
track to eke out a gain of about 0.25 percent on the week.
The euro was little changed at $1.1216 after losing
0.3 percent the previous day. The common currency had risen to a
nine-day high of $1.1257 on Thursday and was still poised for a
0.4 percent weekly gain.
Prior to the boost from the stronger-than-expected May ADP
employment report issued late on Thursday, the dollar had
struggled with U.S. political concerns and a consequent risk-off
mood that had gripped the wider markets earlier in the week.
The currency now awaits the May U.S. non-farm payrolls
report to end the week on a high.
"That today's U.S. jobs report is going to be strong appears
to have become the consensus, so it has become difficult for
participants to sell the dollar," said Yukio Ishizuki, senior
currency strategist at Daiwa Securities.
"If the jobs report really is strong, we could see the
dollar make significant headway as that could prompt speculators
to unwind positions that involved buying the yen and selling
A Reuters poll showed economists forecasting that the United
States added 185,000 jobs in May.
A stronger-than-forecast jobs report could resuscitate
expectations for a Federal Reserve interest rate hike in June
and beyond, after a recent series of downbeat indicators had
thwarted that scenario.
The dollar index against a basket of major currencies was
steady at 97.187 after adding 0.3 percent overnight. The
index was headed for a 0.25 percent loss for the week.
The Australian dollar was 0.1 percent higher at $0.7381
, taking back some ground following its sharp slide on
The Aussie had shed 0.75 percent on Thursday to plumb a
four-week low of $0.7372 after news of an unexpected drop in
China's manufacturing activity.
The New Zealand dollar was firm at $0.7063 after it
was also hit by the lacklustre Chinese numbers.
(Reporting by Shinichi Saoshiro; Editing by Eric Meijer)