* Euro jumps against dollar, yen, but on track for yearly
* Dollar slips against yen on last trading day of the year
* Sterling on track for hefty loss for year marked by Brexit
TOKYO, Dec 30 The euro jumped to its highest in
three weeks in holiday-thinned Asian trade on Friday, but was on
track for a losing year on expectations that U.S.
President-elect Donald Trump's policies will boost inflation and
prompt the U.S. Federal Reserve to hike interest rates at a
The euro was last up 0.8 percent at $1.0570 after
briefly spiking to $1.0700, its highest since Dec. 8. On the
last trading day of 2016, it was down 2.6 percent against the
dollar for the year.
The euro also soared against the Japanese currency. It was
up 0.6 percent at 122.98 yen after touching 123.87,
its highest since Dec. 15, but remained on track to shed 5.8
percent for the year.
"It's a really thin market today, and suddenly offers
disappeared and short-term players pushed the euro higher and
took out stops. That's all," said Kaneo Ogino, director at
foreign exchange research firm Global-info Co in Tokyo.
The dollar slipped 0.1 percent to 116.43 yen after
earlier touching 116.05, its lowest since Dec. 14. The yen lost
3.3 percent for the year, but considerably pared its losses
after the Nov. 8 U.S. presidential election.
Trump's victory helped push U.S. Treasury yields to
multi-year highs on expectations that his administration would
embark on inflation-stoking stimulus policies, and the U.S.
central bank would respond with more interest rate increases.
On Thursday, though, a strong U.S. 7-year note auction on
the last full trading day of the year pushed down yields across
the curve, undermining the dollar's appeal.
The U.S. bond market will close at 2 p.m. Friday in advance
of the New Year's holiday weekend. Japanese markets will be
closed Monday and Tuesday.
Sterling rose 0.2 percent to $1.2293, moving away
from a two-month low of $1.2201 plumbed Wednesday. It was down
16.6 percent in a year marked by Britain's June vote to exit the
China's yuan looked set to end the year down
nearly 7 percent against the resurgent dollar, making it the
worst performing Asian currency of the year.
China will change the way it calculates a key yuan index in
the new year, nearly doubling the number of foreign currencies
in a basket that is used to set the yuan's value, its foreign
exchange market operator said late on Thursday.
China has been promoting use of the index partly to divert
attention from the yuan's value against the dollar which has
fallen near its lowest in 8-1/2 years.
Analysts said the change was in line with the central bank's
bid to discourage investors from exclusively tracking the yuan's
fluctuations, but it would have limited impact on the Chinese
currency, which is expected to weaken further against the dollar
(Reporting by Tokyo markets team; Editing by Kim Coghill)